U-Haul 2005 Annual Report Download - page 28

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27 I AMERCO ANNUAL REPORT
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Listed฀below฀are฀revenues฀and฀earnings฀from฀operations฀at฀each฀of฀our฀four฀operating฀segments฀for฀fiscal฀2005฀and฀fiscal฀2004:
Listed below are revenues and earnings from operations at each of our four operating segments for fiscal
2005 and fiscal 2004:
Year Ended March 31,
2005 2004
Moving and storage
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,791,667 $1,768,872
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 165,985 93,593
Property and casualty insurance
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 41,417 114,941
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (14,814) (35,950)
Life insurance
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 159,484 177,812
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,065 11,253
SAC Holdings
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 43,172 218,955
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,466 64,693
Eliminations
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (27,619) (104,586)
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,294 (6,674)
Consolidated Results
RevenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,008,121 2,175,994
Earnings from operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 166,996 126,915
Interest expense for fiscal 2005 was $73.2 million, compared with $121.7 million in fiscal 2004. Lower
interest expense in fiscal 2005 reflects the deconsolidation of SAC Holding Corporation, lower borrowings and
a lower cost of borrowing.
Litigation proceeds, net of fees and costs, resulting from the settlement of litigation with our former
auditors were $51.3 million in fiscal 2005.
Income tax expense was $55.7 million in fiscal 2005 compared with $8.1 million in fiscal 2004 and
reflects our higher pretax earnings for fiscal 2005, net of an increase in tax in fiscal 2004 of $4.8 million
resulting from our settlement with the IRS for tax audits related to 1996 and 1997.
Dividends accrued on our Series A preferred stock were $13.0 million in fiscal 2005, unchanged from
fiscal 2004.
As a result of the above mentioned items, net earnings available to common shareholders improved to
$76.5 million in fiscal 2005, compared with a net loss of $15.8 million in fiscal 2004. Fiscal 2005 results
included non-recurring litigation proceeds of $51.3 million pretax, while last year's results included non-
recurring restructuring charges of $44.1 million pretax.
The weighted average number of basic and diluted shares outstanding were 20,804,773 in fiscal 2005 and
were 20,749,998 in fiscal 2004.
Basic and diluted earnings per share in fiscal 2005 were $3.68 per share, compared with a net loss per
share of $0.76 for the same period last year.
19
Interest฀ expense฀ for฀ fiscal฀ 2005฀ was฀ $73.2฀ million,฀
compared฀ with฀ $121.7฀ million฀ in฀ fiscal฀ 2004.฀ Lower฀
interest฀expense฀in฀fiscal฀2005฀reflects฀the฀deconsolidation฀
of฀ SAC฀ Holding฀ Corporation,฀ lower฀ borrowings฀ and฀ a฀
lower฀cost฀of฀borrowing.
Litigation฀proceeds,฀net฀of฀fees฀and฀costs,฀resulting฀from฀
the฀settlement฀of฀litigation฀with฀our฀former฀auditors฀were฀
$51.3฀million฀in฀fiscal฀2005.
Income฀ tax฀ expense฀ was฀ $55.7฀ million฀ in฀ fiscal฀ 2005฀
compared฀ with฀ $8.1฀ million฀ in฀ fiscal฀ 2004฀ and฀ reflects฀
our฀ higher฀ pretax฀ earnings฀ for฀ fiscal฀ 2005,฀ net฀ of฀ an฀
increase฀ in฀ tax฀ in฀ fiscal฀ 2004฀ of฀ $4.8฀ million฀ resulting฀
from฀our฀settlement฀with฀the฀IRS฀for฀tax฀audits฀related฀to฀
1996฀and฀1997.
Dividends฀accrued฀on฀ our฀Series฀ A฀preferred฀stock฀were฀
$13.0฀million฀in฀fiscal฀2005,฀unchanged฀from฀fiscal฀2004.
As฀ a฀ result฀ of฀ the฀ above฀ mentioned฀ items,฀ net฀ earnings฀
available฀ to฀ common฀ shareholders฀ improved฀ to฀ $76.5฀
million฀in฀fiscal฀2005,฀compared฀with฀a฀net฀loss฀of฀$15.8฀
million฀ in฀ fiscal฀ 2004.฀ Fiscal฀ 2005฀ results฀ included฀
non-recurring฀ litigation฀
proceeds฀ of฀ $51.3฀ million฀ pretax,฀
while฀last฀year’s฀results฀included฀non-recurring฀restructuring฀
charges฀of฀$44.1฀million฀pretax.
The฀weighted฀average฀number฀of฀basic฀and฀diluted฀shares฀
outstanding฀ were฀ 20,804,773฀ in฀ fiscal฀ 2005฀ and฀ were฀
20,749,998฀in฀fiscal฀2004.
Basic฀and฀diluted฀earnings฀per฀share฀in฀fiscal฀2005฀were฀
$3.68฀ per฀ share,฀ compared฀ with฀ a฀ net฀ loss฀ per฀ share฀ of฀
$0.76฀for฀the฀same฀period฀last฀year.