U-Haul pany(UHAL) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenues for Q3 2023 were $1,649.86 million, a decrease of 3.1$1,702.86 million in Q3 2022[13] - Self-moving equipment rentals revenue decreased by 8.0% to $1,069.41 million in Q3 2023 from$1,162.03 million in Q3 2022[13] - Self-storage revenues increased by 12.5% to $208.89 million in Q3 2023 from$185.59 million in Q3 2022[13] - Total revenues for the six months ended September 30, 2023, were $3.19 billion, with self-moving equipment rentals accounting for$2.07 billion[141] - Total revenues for the six months ended September 30, 2022, were $3.30 billion, with self-moving equipment rentals generating$2.25 billion[143] - Total revenues for the quarter ended September 30, 2023, were $1,649,860, with$1,305,523 recognized under ASC 842 (leases) and $230,127 under ASC 606 (revenue from contracts with customers)[188] - Total revenues for the six months ended September 30, 2023, were$4,270,838, with $2,527,839 recognized under ASC 842 and$439,035 under ASC 606[188] - Revenues recognized over time for the quarter ended September 30, 2023, were $118,368, while revenues recognized at a point in time were$111,759[188] - Revenues recognized over time for the six months ended September 30, 2023, were $209,683, while revenues recognized at a point in time were$229,352[188] - Self-moving equipment rentals generated $1,069,405 in revenue for the quarter ended September 30, 2023[135] - Self-moving equipment rentals revenue for Q3 2022 was$1.16 billion, contributing significantly to total revenues of $1.70 billion[137] - Self-storage revenues for Q3 2022 reached$185.6 million, showing steady growth in the storage segment[137] - Total revenues for the six months ended September 30, 2022 were 3.301 billion, with Moving & Storage contributing 3.120 billion and Property & Casualty Insurance $180.3 million[158] Net Earnings and Profitability - Net earnings for Q3 2023 were$273.51 million, a decrease from $358.05 million in Q3 2022[20] - Net earnings for the six months ended September 30, 2023 were$530,346 thousand, a decrease from $688,211 thousand in the same period last year[22] - Net earnings for the quarter ended September 30, 2023 were$273,508 thousand, compared to $349,866 thousand in the same period last year[24] - Net earnings for 2023 were$530.3 million, a decrease from $688.2 million in 2022[30] - Net earnings available to common stockholders in 2023 were$273.5 million, down from $349.9 million in 2022[15] - Net earnings available to common stockholders for the quarter ended September 30, 2023, were$273,508[135] - Net earnings available to common stockholders for the six months ended September 30, 2023, were $530.3 million, reflecting strong profitability[141] - Net earnings available to common stockholders for the six months ended September 30, 2022, were$688.2 million, indicating robust financial performance[144] - Net earnings for the period were $688.2 million[153] Assets and Liabilities - Total assets increased by 5.1$19,021.45 million as of September 30, 2023, compared to $18,100.73 million as of March 31, 2023[11] - Property, plant and equipment increased by 9.2$17,063.48 million as of September 30, 2023, from $15,660.29 million as of March 31, 2023[11] - Total liabilities increased by 3.4$11,991.07 million as of September 30, 2023, from $11,596.54 million as of March 31, 2023[11] - Stockholders' equity increased by 8.1$7,030.38 million as of September 30, 2023, from $6,504.19 million as of March 31, 2023[11] - Total stockholders' equity as of September 30, 2023 was$7,030,378 thousand, an increase from $6,324,173 thousand in the same period last year[24] - Total liabilities and stockholders' equity as of September 30, 2023, were$19,021,450[128] - Total liabilities for notes, loans, and finance leases payable increased to $6,436,800 from$5,961,511[168] - Total fair value of assets as of March 31, 2023, was $765,038, with reinsurance recoverables and trade receivables at$189,498, mortgage loans at $466,531, and other investments at$109,009[170] - Total fair value of liabilities as of March 31, 2023, was $6,143,350, with notes, loans, and finance leases payable at$5,710,735[170] - Total assets for the Moving & Storage segment were 16,156,182 thousand as of September 30, 2023[126] - Total property, plant, and equipment, net for the Moving & Storage segment were 12,397,040 thousand as of September 30, 2023[126] - Total assets for the Life Insurance segment were 2,881,626 thousand as of September 30, 2023[126] - Total assets for the Property & Casualty Insurance segment were 481,957 thousand as of September 30, 2023[126] - Identifiable assets as of September 30, 2023, were $19,021,450, with the United States holding$18,279,234 and Canada holding $742,216[157] - Identifiable assets as of September 30, 2023 were$19.021 billion, with Moving & Storage accounting for 18.279 billion and Property & Casualty Insurance 742.2 million[158] Cash Flow and Investments - Net cash provided by operating activities in 2023 was $937.4 million, down from$1.19 billion in 2022[30] - Property, plant, and equipment purchases in 2023 totaled $1.66 billion, up from$1.34 billion in 2022[30] - Net cash used by investing activities in 2023 was $1.09 billion, slightly lower than$1.10 billion in 2022[30] - Net cash provided by financing activities in 2023 was $233.7 million, down from$291.4 million in 2022[30] - Cash and cash equivalents at the end of 2023 were $2.15 billion, compared to$3.07 billion in 2022[30] - Net cash provided by operating activities for the six months ended September 30, 2023 was 937.4 million, with Moving & Storage contributing 887.3 million, Property & Casualty Insurance $18.1 million, and Life Insurance$32.1 million[147] - Net cash used by investing activities for the six months ended September 30, 2023 was $1.086 billion, primarily driven by$1.664 billion in purchases of property, plant, and equipment[147] - Net cash provided by financing activities for the six months ended September 30, 2023 was $233.7 million, including$704.96 million in borrowings from credit facilities and $351.89 million in principal repayments on credit facilities[149] - Cash and cash equivalents increased by$84.6 million to $2.145 billion at the end of September 30, 2023, compared to$2.061 billion at the beginning of the period[149] - Net cash provided by operating activities totaled $1.188 billion[153] - Net cash used by investing activities was$1.105 billion[153] - Purchases of property, plant, and equipment totaled $1.336 billion[153] - Proceeds from sales and paydowns of property, plant, and equipment were$329.6 million[153] - Net gains on disposal of personal property were $128.7 million[153] - Net losses on disposal of real estate were$4.2 million[153] - Cash and cash equivalents totaled $2,145.6 million as of September 30, 2023, compared with$2,060.5 million as of March 31, 2023[312] - Net cash provided by operating activities decreased $250.7 million in the first six months of fiscal 2024 compared with the first six months of fiscal 2023[313] - The Company estimates reinvesting approximately$870 million in its rental equipment fleet during fiscal 2024, net of equipment sales and excluding any lease buyouts[316] - The company invested $633 million in real estate acquisitions, new construction, and renovation for the first six months of fiscal 2024[317] - Net capital expenditures for Moving and Storage were$1,256.1 million for the first six months of fiscal 2024, compared to $1,005.9 million in the same period of fiscal 2023[318] Insurance Segment Performance - Net investment and interest income more than doubled to$64.74 million in Q3 2023 from $30.51 million in Q3 2022[13] - Net investment and interest income for the six months ended September 30, 2023, was$129.3 million, showing a significant increase compared to previous periods[141] - Equity in the earnings of U-Haul Holding Company's insurance subsidiaries was $27.1 million for the first six months of fiscal 2024, compared with$15.9 million for the first six months of fiscal 2023[303] - Net premiums for Property and Casualty Insurance were $47.4 million and$46.8 million for the six months ended June 30, 2023 and 2022, respectively[304] - Net investment income for Life Insurance was $63.1 million and$46.4 million for the six months ended June 30, 2023 and 2022, respectively[307] - Property and Casualty Insurance's stockholder's equity increased to $317.5 million as of June 30, 2023, from$294.5 million as of December 31, 2022[320] - Life Insurance's stockholder's equity increased to $145.0 million as of June 30, 2023, from$132.2 million as of December 31, 2022[322] - Life insurance premiums for Q3 2022 were $25.5 million, while property and casualty insurance premiums were$25.7 million[137] - Property and casualty insurance premiums for the six months ended September 30, 2022, were $45.7 million, slightly lower than the previous year[143] Debt and Interest Expenses - Total interest expense for the quarter ended September 30, 2023, was$63.9 million, compared to $57.2 million in the same period in 2022[84] - Interest paid in cash for the second quarter of fiscal 2024 was$74.2 million, up from $63.1 million in the same period in 2023[84] - The fair value of interest rate swaps designated as cash flow hedges was$12.3 million as of September 30, 2023, compared to $5.3 million as of March 31, 2023[89] - The company expects to reclassify$5.7 million of net gains on interest rate contracts from AOCI to earnings as interest expense over the next twelve months[89] - Real estate loans totaling $202.1 million have interest rates based on SOFR plus applicable margins, with the applicable SOFR at 5.33$283.7 million as of September 30, 2023, and $289.6 million as of March 31, 2023[67] - Senior mortgages had a weighted average interest rate of 4.18$2.49 billion as of September 30, 2023, and $2.37 billion as of March 31, 2023[67] - Fleet loans (revolving credit) had a weighted average interest rate of 5.97$593.9 million as of September 30, 2023, and $615.0 million as of March 31, 2023[67] - Finance liabilities (rental equipment) had a weighted average interest rate of 4.38$1.54 billion as of September 30, 2023, and $1.26 billion as of March 31, 2023[67] - The aggregate outstanding principal balance of U-Notes® was$75.4 million as of September 30, 2023, with $1.7 million held by insurance subsidiaries and eliminated in consolidation[81] - The weighted average interest rate for revolving credit during the six months ended September 30, 2023, was 6.38$715.0 million[87] - The net book value of rental equipment for finance leases was $377.7 million as of September 30, 2023, and$474.8 million as of March 31, 2023[74] - The net book value of rental equipment for finance liabilities was $1.82 billion as of September 30, 2023, and$1.50 billion as of March 31, 2023[76] - Total notes, loans, and finance leases payable, net of debt issuance costs, were $6.40 billion as of September 30, 2023, and$6.11 billion as of March 31, 2023[67] - The annual maturities of notes, loans, and finance leases payable for the next five years and thereafter totaled $6.44 billion as of September 30, 2023[82] - U-Haul Holding Company issued$600.0 million of fixed rate senior unsecured notes in September 2021, with interest rates ranging from 2.43% to 2.78% and maturities between 2029 and 2033[77] - In December 2021, U-Haul Holding Company issued another $600.0 million of fixed rate senior unsecured notes, with interest rates ranging from 2.55$2.63 for the six months ended September 30, 2023, compared to $4.41 for the same period in 2022[18] - Total comprehensive income for the quarter ended September 30, 2023 was$246,991 thousand, compared to $259,680 thousand in the previous quarter[22] - Foreign currency translation loss for the six months ended September 30, 2023 was$2,380 thousand, compared to $542 thousand in the same period last year[22] - Unrealized net gain on investments and impact of LFPB discount rates for the six months ended September 30, 2023 was$7,047 thousand, compared to a loss of $244,826 thousand in the same period last year[22] - Change in fair value of cash flow hedges for the six months ended September 30, 2023 was$7,175 thousand, compared to $6,417 thousand in the same period last year[22] - Amounts reclassified into earnings on hedging activities for the six months ended September 30, 2023 was a loss of$1,883 thousand, compared to a gain of $446 thousand in the same period last year[22] - Total comprehensive income for the six months ended September 30, 2023 was$540,305 thousand, compared to $449,706 thousand in the same period last year[22] - Series N Non-Voting Common Stock dividends for the quarter ended September 30, 2023 were$7,059 thousand, compared to $9,804 thousand in the same period last year[24] - Basic and diluted earnings per share of Common Stock in 2023 were$1.36, compared to $2.23 in 2022[15] - The effective tax rate for the six months ended September 30, 2023, was 23.9$1.36 and $2.23 for the quarters ended September 30, 2023 and 2022, respectively[56] - Earnings per share for Non-Voting Common Stock were$1.40 and $1.73 for the quarters ended September 30, 2023 and 2022, respectively[56] - The liability for future policy benefits is discounted using a current upper-medium grade fixed-income instrument yield, reflecting the duration characteristics of the liability[50] - The adjusted cost of bonds on deposit with insurance regulatory authorities decreased to$21.2 million as of September 30, 2023, from $23.4 million as of March 31, 2023[59] - The company recorded a net impairment charge of ($0.4) million in the first six months ended September 30, 2023, compared to $1.9 million in the same period of 2022[64] - Available-for-sale investments as of September 30, 2023, had an amortized cost of$2,243,618 thousand and a fair market value of $2,021,733 thousand[65] - The fair value of mortgage loans as of September 30, 2023 was$521.8 million, classified as Level 3 in the fair value hierarchy[167] - The fair value of other investments as of September 30, 2023 was $88.7 million, also classified as Level 3 in the fair value hierarchy[167] - The total estimated fair value of financial instruments as of September 30, 2023 was$823.1 million, with $212.6 million in reinsurance recoverables and trade receivables,$521.8 million in mortgage loans, and $88.7 million in other investments[167] - Net (gains) losses from derivative instruments for the first six