U-Haul 2007 Annual Report Download - page 23

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17
Management’s Discussion and Analysis of Financial Condition and Results of Operations
G
bligations and Commercial Commitments.” We conclude this
M
e section “Item 1A: Risk Factors”. Our actual results may differ materially from these forward-
lo
ial position of AMERCO’ s consolidated insurance operations are determined as of
ach year.
O
f moving and self-storage related products and services and the convenience of our broad geographic
pr
ber of independent dealers in our network and expanding and taking advantage
of
and administering property and casualty insurance to U-Haul, its customers, its
in
and disability market. We believe this will enable
Oxford to focus more on its core senior population demographic.
Item 7.
eneral
We begin Management’ s Discussion and Analysis of Financial Condition and Results of Operations with the
overall strategy of AMERCO, followed by a description of our operating segments and the strategy of our operating
segments to give the reader an overview of the goals of our business and the direction in which our businesses and
products are moving. This is followed by a section entitled the “Critical Accounting Policies and Estimates” that we
believe is important to understanding the assumptions and judgments incorporated in our reported financial results.
In the next section, we discuss our results of operations for fiscal 2007 compared with fiscal 2006, and for fiscal
2006 compared with fiscal 2005 beginning with an overview. We then provide an analysis of changes in our balance
sheet and cash flows, and discuss our financial commitments in the sections entitled “Liquidity and Capital
Resources” and “Disclosures about Contractual O
D&A by discussing our outlook for fiscal 2008.
This MD&A should be read in conjunction with the other sections of this Annual Report on Form 10-K, including
“Item 1: Business”, “Item 6: Selected Financial Data” and “Item 8: Financial Statements and Supplementary Data.”
The various sections of this MD&A contain a number of forward-looking statements, as discussed under the caption
“Cautionary Statements Regarding Forward-Looking Statements”, all of which are based on our current
expectations and could be affected by the uncertainties and risk factors described throughout this filing and
particularly under th
oking statements.
AMERCO has a fiscal year that ends on the 31st of March for each year that is referenced. Our insurance company
subsidiaries have fiscal years that end on the 31st of December for each year that is referenced. They have been
consolidated on that basis. Our insurance companies’ financial reporting processes conform to calendar year
reporting as required by state insurance departments. Management believes that consolidating their calendar year
into our fiscal year financial statements does not materially affect the financial position or results of operations. The
Company discloses any material events occurring during the intervening period. Consequently, all references to our
insurance subsidiaries’ years 2006, 2005 and 2004 correspond to fiscal 2007, 2006 and 2005 for AMERCO. The
operating results and financ
December 31st of e
verall Strategy
Our overall strategy is to maintain our leadership position in the North American “do-it-yourself” moving and
storage industry. We accomplish this by providing a seamless and integrated supply chain to the “do-it-yourself”
moving and storage market. As part of executing this strategy, we leverage the brand recognition of U-Haul with our
full line o
esence.
Our primary focus is to provide our customers with a wide selection of moving rental equipment, convenient self-
storage rental facilities and related moving and self-storage products and services. We are able to expand our
distribution and improve customer service by increasing the amount of moving equipment and storage rooms
available for rent, expanding the num
our growing eMove capabilities.
RepWest is focused on providing
dependent dealers and affiliates.
Oxford is focused on long-term capital growth through direct writing and reinsuring of annuity, life and Medicare
supplement products primarily in the senior marketplace. Oxford is pursuing increased direct writing through
acquisitions of insurance companies, expanded distribution channels and product development. In 2005, Oxford
determined that it would no longer pursue growth in the credit life