Revenue Performance - Self-moving equipment rental revenues decreased by $91.6 million, from $1,090.8 million in Q1 FY2023 to $999.2 million in Q1 FY2024, with declines in transactions and average miles driven [242]. - Self-storage revenues increased by $25.8 million, from $173.2 million in Q1 FY2023 to $199.0 million in Q1 FY2024, with a 9% increase in average monthly occupied units [245]. - Consolidated revenue decreased from $1,597.8 million in Q1 FY2023 to $1,540.3 million in Q1 FY2024, reflecting a total decline of approximately 3.6% [242]. - Moving and Storage revenue decreased to $1,459.5 million in Q1 FY2024 from $1,523.6 million in Q1 FY2023, a decline of 4.2% [257]. - Self-storage revenues increased by $25.8 million, reaching $198.9 million in Q1 FY2024, with a 9% increase in average monthly occupied units [258]. - The average monthly occupancy rate for self-storage decreased to 82.8% in Q1 FY2024 from 84.5% in Q1 FY2023 [259]. - Approximately 5.1% of the company's revenue was generated in Canada during Q1 fiscal 2024, with a 10% change in the U.S. dollar relative to the Canadian dollar not expected to materially impact net income [310]. Earnings and Expenses - Earnings from operations decreased to $399.7 million in Q1 FY2024, down from $495.5 million in Q1 FY2023, representing a decline of 19.3% [253]. - Basic and diluted earnings per share for Voting Common Stock decreased from $2.18 in Q1 FY2023 to $1.27 in Q1 FY2024 [255]. - Total costs and expenses increased by $38.3 million in Q1 FY2024 compared to Q1 FY2023, with operating expenses for Moving and Storage rising by $28.5 million [251]. - Total costs and expenses increased by $30.8 million, with operating expenses rising by $28.5 million in Q1 FY2024 compared to Q1 FY2023 [262]. - Net cash provided by operating activities decreased by $185.7 million in Q1 FY2024 compared to Q1 FY2023 due to lower operating profits and increased claims payments [279]. - Net cash provided from operating activities for Moving and Storage decreased to $452.0 million in Q1 fiscal 2024 from $623.6 million in Q1 fiscal 2023, a decline of 27.5% [289]. Investment and Capital Expenditures - The company plans to reinvest approximately $820 million in its rental equipment fleet during FY2024, with $261 million already invested in Q1 FY2024 [281]. - The company invested $293.9 million in real estate acquisitions, new construction, and renovations in Q1 FY2024 [282]. - Net capital expenditures for Moving and Storage were $580.1 million in Q1 fiscal 2024, up from $487.0 million in Q1 fiscal 2023, reflecting a 19.1% increase [283]. Financial Position and Liquidity - Cash and cash equivalents increased to $2,377.1 million as of June 30, 2023, compared to $2,060.5 million at March 31, 2023 [278]. - The company has filed claims for tax refunds totaling approximately $366 million, of which $243 million has been received, providing additional liquidity [296]. - As of June 30, 2023, the company had available borrowing capacity under existing credit facilities of $490.0 million [297]. Risk Factors and Strategic Focus - The company is exposed to interest rate risk with $694.2 million of variable rate debt obligations, of which $490.0 million is not fixed through interest rate swaps [304]. - The company acknowledges the inherent risks and uncertainties associated with forward-looking statements, including competition and economic conditions [311]. - The company is assessing the impact of interest rate and foreign currency exchange rate changes on its operations, highlighting financial risk management [311]. - The company emphasizes the importance of compliance with environmental regulations, which may affect operational costs [312]. - The company relies on a limited number of manufacturers for rental trucks, indicating potential supply chain vulnerabilities [312]. - The company faces challenges related to inflationary pressures that could impact its operating margin [312]. - The company recognizes the need to attract and retain key employees to ensure operational success [312]. Growth and Expansion Plans - The company plans to increase investment in its truck fleet and rental equipment to meet operational goals in fiscal 2024, with a focus on improving transaction volume and pricing [299]. - The company is actively pursuing new locations and expansions in its storage business, with an expected increase in spending on acquisitions and new developments in fiscal 2024 [300]. - The company plans to expand its U-Haul® storage affiliate program, indicating a focus on growth in storage solutions [311]. - The company is investing in the U-Box® program, which suggests a strategy to enhance its service offerings [311].
U-Haul pany(UHAL_B) - 2024 Q1 - Quarterly Report