U-Haul 2005 Annual Report Download - page 21

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20 I AMERCO ANNUAL REPORT
Business Description
Refinancing
On฀ May฀ 9฀ and฀ May฀ 12,฀ 2005฀ the฀ Company฀ entered฀
into฀ agreements฀ to฀ refinance฀ its฀ capital฀ structure฀ and฀
gave฀ notices฀ to฀ its฀ current฀ lenders฀ of฀ its฀ plans฀ for฀ early฀
redemption฀of฀the฀Company’s฀existing฀notes฀and฀loans.
The฀ structure฀ consists฀ of฀ three฀ asset-backed฀ facilities฀
including฀ a฀ $240฀ million฀ senior฀ mortgage฀ funded฀ by฀
Merrill฀ Lynch,฀ a฀ $240฀ million฀ senior฀ mortgage฀ funded฀
by฀ Morgan฀ Stanley฀ and฀ a฀ $465฀ million฀ real฀ estate฀ loan฀
funded฀by฀Merrill฀Lynch.฀The฀new฀financing฀was฀funded฀
on฀June฀8,฀2005.
The฀ Company฀ will฀ incur฀ a฀ one-time฀ pre-tax฀ charge฀
of฀ approximately฀ $34฀ million฀ in฀ the฀ first฀ quarter฀ of฀
fiscal฀ 2006฀ associated฀ with฀ the฀ early฀ payment฀ of฀ its฀฀
existing฀loans.
Abatement of State of Arizona Department of Insurance
Order for Supervision
On฀ May฀ 20,฀ 2003,฀ the฀ State฀ of฀ Arizona฀ Department฀
of฀ Insurance฀ issued฀ an฀ Order฀ for฀ Supervision฀ against฀
RepWest.฀ The฀ Order฀ required฀ that฀ RepWest฀ eliminate฀
its฀credit฀exposure฀with฀AMERCO฀and฀its฀affiliates฀and฀
possess฀ sufficient฀ surplus฀ to฀ comply฀ with฀ Arizona฀ law.฀
These฀ requirements฀ have฀ been฀ met฀ and฀ the฀ Order฀ was฀
abated฀on฀June฀9,฀2005.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of the security holders of AMERCO or U-Haul during the fourth
quarter of the fiscal year covered by this report, through the solicitation of proxies or otherwise.
PART II
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities
As of April 30, 2005 there were approximately 3,000 holders of record of the common stock. AMERCO's
common stock is listed on NASDAQ under the trading symbol ""UHAL.''
The following table sets forth the high and the low sales price of the common stock of AMERCO for the
periods indicated:
For the Years Ended March 31,
2005 2004
High Low High Low
First quarter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $29.50 $19.76 $ 9.12 $ 3.10
Second quarter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $38.03 $21.00 $26.66 $ 6.85
Third quarter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $46.54 $36.89 $28.90 $16.35
Fourth quarter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $48.23 $41.50 $24.34 $21.05
The common stock of U-Haul is wholly owned by AMERCO. As a result, no active trading market exists
for the purchase and sale of such common stock.
Dividends
AMERCO does not have a formal dividend policy. The Board of Directors of AMERCO periodically
considers the advisability of declaring and paying dividends in light of existing circumstances. The Company's
credit facility and its senior note indentures limit the Company's ability to pay dividends and accordingly, the
Company does not anticipate declaring and paying dividends on its common stock in the foreseeable future.
U-Haul has not declared cash dividends to AMERCO during the three most recent fiscal years.
See Note 20 of Notes to Consolidated Financial Statements for a discussion of certain statutory
restrictions on the ability of the insurance subsidiaries to pay dividends to AMERCO.
See Note 11 of Notes to Consolidated Financial Statements for a discussion of AMERCO's preferred
stock.
During the fourth quarter of fiscal 2005, we did not repurchase any shares of our equity securities.
10
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Dividends
AMERCO฀does฀ not฀have฀a฀formal฀dividend฀policy.฀The฀
Board฀ of฀ Directors฀ of฀ AMERCO฀ periodically฀considers฀
the฀advisability฀of฀declaring฀and฀paying฀dividends฀in฀light฀
of฀existing฀circumstances.฀The฀Company’s฀credit฀facility฀
and฀its฀senior฀note฀indentures฀limit฀the฀Company’s฀ability฀
to฀pay฀dividends฀and฀accordingly,฀the฀Company฀does฀not฀
anticipate฀declaring฀and฀paying฀dividends฀on฀its฀common฀
stock฀in฀the฀foreseeable฀future.
U-Haul฀ has฀ not฀ declared฀ cash฀ dividends฀ to฀ AMERCO฀
during฀the฀three฀most฀recent฀fiscal฀years.
See฀Note฀20฀of฀Notes฀to฀Consolidated฀Financial฀Statements฀
for฀ a฀ discussion฀ of฀ certain฀ statutory฀ restrictions฀ on฀ the฀
ability฀of฀the฀ insurance฀subsidiaries฀to฀ pay฀dividends฀to฀
AMERCO.
See฀Note฀11฀of฀Notes฀to฀Consolidated฀Financial฀
Statements฀
for฀a฀discussion฀of฀AMERCO’s฀preferred฀stock.
During฀ the฀ fourth฀ quarter฀ of฀ fiscal฀ 2005,฀ we฀ did฀ not฀
repurchase฀any฀shares฀of฀our฀equity฀securities.
As฀of฀April฀30,฀2005฀there฀were฀approximately฀3,000฀holders฀of฀record฀of฀the฀common฀stock.฀AMERCO’s฀common฀stock฀
is฀listed฀on฀NASDAQ฀under฀the฀trading฀symbol฀“UHAL.”
The฀following฀table฀sets฀forth฀the฀high฀and฀the฀low฀sales฀price฀of฀the฀common฀stock฀of฀AMERCO฀for฀the฀periods฀indicated
:
The฀common฀stock฀of฀U-Haul฀is฀wholly฀owned฀by฀AMERCO.฀As฀a฀result,฀no฀active฀trading฀market฀exists฀for฀the฀purchase฀
and฀sale฀of฀such฀common฀stock.