Amerco (NASDAQ:UHAL) Q3 2019 Earnings Conference Call - Final Transcript

Feb 07, 2019 • 10:00 am ET


Amerco (NASDAQ:UHAL) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the AMERCO Third Quarter Fiscal 2019 Investor Call and Webcast. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Sebastien Reyes. Please go ahead.

Sebastien Reyes

Good morning, and thank you for joining us today. Welcome to the AMERCO Third Quarter Fiscal 2019 Investor Call. Before we begin, I'd like to remind everyone that certain of the statements during this call, including, without limitation, statements regarding revenue, expenses, income and general growth of our business, may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Certain factors could cause actual results to differ materially from those projected. For a discussion of the risks and uncertainties that may affect AMERCO's business and future operating results, please refer to Form 10-Q for the quarter ended December 31, 2018, which is on file with the US Securities and Exchange Commission.

I'll now turn the call over to Joe Shoen, Chairman of AMERCO.

Edward J. Shoen

Thanks, Sebastien. Good morning to everyone. We remain in very competitive businesses: our truck rental and remarketing, our self-storage and our moving suppliers markets. Lots of well-financed people look at these markets and think this is an easy market and decide to compete, and we have to deal with that.

The truck rental, particularly, is more competitive than many people comprehend, but I believe there remains room for profitable growth. Our truck remarketing is just beginning a new model cycle. We finished the current remarketing cycle and did a little bit better than last year, but we're still short of where I'd like to see us, and I believe we're on the path to improve.

Self-storage continues to reflect a flood of additional product. We, of course, are part of this flood. This likely will result in some near-term sluggishness in rent-up. Of course, in two or three years, we'll all be able to look back and know how this turns out.

I'm very positive on the long-term strength of the self-storage market for well-positioned, well-run, good-quality product. I've got to focus on our retail moving and supplier programs currently in process. I believe we have room for continued growth there, just a little unhappy with some of the growth in the last 12 months.

With that, I'll turn it over to Jason to try to walk us through the numbers.

Jason A. Berg

Thanks, Joe. Throughout my presentation this morning, all of my comparisons are going to be for the third quarter of this year compared to the third quarter of fiscal 2018, unless otherwise noted.

Yesterday, we reported third quarter earnings of $4.01 per share, compared to $27 per share before adjustments. I think a fair way of looking at our quarterly results is to provide some adjustments