Financial Data and Key Metrics Changes - The company reported a third-quarter loss of $37 million compared to earnings of $67 million in the same quarter last year, resulting in a loss of $0.18 per non-voting share versus earnings of $0.35 per share previously [9] - Adjusted EBITDA for the moving and storage segment decreased by 11%, approximately $42 million, reflecting a similar decline in operating cash flows for the quarter [9][10] - A significant increase in depreciation and losses from the disposal of rental units contributed to a $75 million cost increase compared to the same quarter last year [10][12] Business Line Data and Key Metrics Changes - Equipment rental revenues increased by $8 million, or just under 1%, primarily from the in-town portion of the business [11] - Storage revenues rose by $18 million, or 8%, with average revenue per foot improving by just under 7% and same-store revenue per occupied foot up by 5% [13] - The company added 16 new storage locations, translating to about 1.5 million new net rentable square feet [15] Market Data and Key Metrics Changes - The company has been adding self-storage units faster than they are being rented, resulting in a surplus of unrented units [5] - Same-store occupancy decreased by 490 basis points to just over 87%, with a significant portion of this decrease attributed to the removal of delinquent units [14] Company Strategy and Development Direction - The company plans to open more U-Haul dealership locations to utilize excess fleet capacity and improve transaction rates [4] - There is a focus on investing in digital tools to meet customer expectations and enhance service delivery [6] - The company is strategically slowing down the pace of development in self-storage while still pursuing opportunities in markets with potential growth [78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to excessive acquisition costs of vans and pickups, which have negatively impacted earnings [4] - The company is optimistic about future cargo van purchases being at a lower average cost, which may alleviate some financial pressures [11] - Management expressed confidence in filling more storage units and improving overall performance despite current challenges [88] Other Important Information - The company invested $770 million in real estate acquisitions and development during the first nine months of fiscal 2026, a decrease of $444 million compared to the previous year [15] - Cash and availability from existing loan facilities totaled $1.475 billion as of December 2025 [16] Q&A Session Summary Question: Discussion on pressures in the one-way market and U-Box program - Management noted that consumer anxiety leads to shorter transaction distances, affecting the one-way rental market and U-Box usage [22][23] Question: Clarification on depreciation changes - Management explained that depreciation rates for box trucks decrease over time, while adjustments for pickup and cargo vans are made based on resale market conditions [25][26] Question: Capacity reductions from competitors - Management indicated that competitors are likely reducing fleet and outlets, positioning the company to capture demand when the market improves [30][31] Question: Expense management and future strategies - Management is focused on budget control and expects to see results in the current and next fiscal year, while also addressing rising personnel costs [38][39] Question: U-Box warehouse capacity in major markets - Management confirmed ongoing construction and property ownership in key metropolitan areas to enhance U-Box service availability [44][49] Question: Future vehicle acquisition and depreciation - Management provided insights on the remaining cargo vans and the expected loss on sale for the 2024 model year vehicles [54][56] Question: Fleet expenditure reduction and self-storage development - Management discussed the need to balance fleet purchases with sales to avoid future imbalances, while also slowing down self-storage development to a more manageable pace [70][78]