Amerco (NASDAQ:UHAL) Q2 2020 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET


Amerco (NASDAQ:UHAL) Q2 2020 Earnings Conference Call - Final Transcript


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Good day and welcome to the AMERCO Second Quarter Financial 2020 Investor Call and Webcast. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would like to turn the conference over to Sebastian Reyes. Please go ahead.

Sebastien Reyes

Good morning, and thank you for joining us today. Welcome to the AMERCO Second Quarter Fiscal 2020 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 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 September 30, 2019, 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, Sebastian. And good morning to everybody. I appreciate you being on the call. I assume you've all seen the numbers. Our Moving Equipment Utilization did not keep pace with Moving Equipment Fleet growth for the first half of the year. I'm focusing on that and would expect to see some improvements by fiscal year-end. The big economic opportunity for U-HauL is to have the always moving fleet position geographically evenly relative to demand. I believe it could have done better. Overall, our fleet capacity is considerably less than demand. However, the seasonal, periodic and geographic nature of demand makes the match up tricky. Of course, this is our business and we should know it.

Self-storage continues to be a growing segment both for U-Haul and others. As I've cautioned in the past, ready capital will encourage oversupply from time to time or place to place. I believe our team can hold the increased pace we are operating at. We have a supply of empty rooms in many good markets [Technical Issues] look for us to do our job and rent these units up.

For well in excess of 20 years U-Haul has maintained its own proprietary database of self-storage rates and supply in all 50 states and all Canadian provinces. We try to soberly approach to the market although we have made mistakes from time to time. These storage assets are 20 to 50-year assets.

Historically, oversupply is healed itself with growth in demand. There is a substantial supply of new empty units in many markets. I am not certain that time alone will heal them all. Of course, U-Haul must manage its costs. We are showing strong depreciation increases which do not bother me. I