U-Haul 2011 Annual Report Download - page 12

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Financial Strength Ratings
In May 2011, A.M. Best affirmed the financial strength rating of B+ (Good), for Repwest and upgraded
their outlook to positive. In April 2011, A.M. Best affirmed the financial strength rating of B++ (Good) for
Oxford with a stable outlook.
Cautionary Statement Regarding Forward-Looking Statements
This Annual Report on Form 10-K, contains “forward-looking statements” regarding future events and
our future results of operations. We may make additional written or oral forward-looking statements from
time to time in filings with the SEC or otherwise. We believe such forward-looking statements are 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 (the “Exchange Act”). Such statements
may include, but are not limited to, projections of revenues, earnings or loss, estimates of capital
expenditures, plans for future operations, products or services, financing needs and plans, our
perceptions of our legal positions and anticipated outcomes of government investigations and pending
litigation against us, liquidity, goals and strategies, plans for new business, storage occupancy, growth
rate assumptions, pricing, costs, and access to capital and leasing markets as well as assumptions
relating to the foregoing. The words “believe,” “expect,” “anticipate,” “estimate,” “project” and similar
expressions identify forward-looking statements, which speak only as of the date the statement was
made.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified. Factors that could significantly affect results include, without limitation, the risk
factors enumerated at the end of this section, as well as the following: the Company’s ability to operate
pursuant to the terms of its credit facilities; the Company’s ability to maintain contracts that are critical to
its operations; the costs and availability of financing; the Company’s ability to execute its business plan;
the Company’s ability to attract, motivate and retain key employees; general economic conditions;
fluctuations in our costs to maintain and update our fleet and facilities; our ability to refinance our debt;
changes in government regulations, particularly environmental regulations; our credit ratings; the
availability of credit; changes in demand for our products; changes in the general domestic economy; the
degree and nature of our competition; the resolution of pending litigation against the Company; changes
in accounting standards and other factors described in this report or the other documents we file with the
SEC. The above factors, the following disclosures, as well as other statements in this report and in the
Notes to Consolidated Financial Statements, could contribute to or cause such risks or uncertainties, or
could cause our stock price to fluctuate dramatically. Consequently, the forward-looking statements
should not be regarded as representations or warranties by the Company that such matters will be
realized. The Company assumes no obligation to update or revise any of the forward-looking statements,
whether in response to new information, unforeseen events, changed circumstances or otherwise.
Item 1A. Risk Factors
The following discussion of risk factors should be read in conjunction with Management’s Discussion
and Analysis of Financial Condition and Results of Operations (“MD&A”) and the Consolidated Financial
Statements and related notes. These risk factors may be important in understanding this Annual Report
on Form 10-K or elsewhere.
We operate in a highly competitive industry.
The truck rental industry is highly competitive and includes a number of significant national, regional
and local competitors. We believe the principal competitive factors in this industry are convenience of
rental locations, availability of quality rental moving equipment, breadth of essential services and products
and total cost. Financial results for the Company can be adversely impacted by aggressive pricing from
our competitors. Some of our competitors may have greater financial resources than we have. We cannot
assure you that we will be able to maintain existing rental prices or implement price increases. Moreover,
if our competitors reduce prices and we are not able or willing to do so as well, we may lose rental
volume, which would likely have a materially adverse affect on our results of operations.
The self-storage industry is large and highly fragmented. We believe the principal competitive factors in
this industry are convenience of storage rental locations, cleanliness, security and price. Competition in