U-Haul 2011 Annual Report Download - page 29

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Listed below are revenues and earnings from operations at each of our operating segments for fiscal
2011 and 2010. The insurance companies years ended December 31, 2010 and 2009.
2011 2010
Moving and storage
Revenues $ 1,977,826 $ 1,816,322
Earnings from operations 370,100 185,329
Property and casualty insurance
Revenues 38,663 34,390
Earnings from operations 5,638 6,279
Life insurance
Revenues 229,911 155,725
Earnings from operations 17,435 16,858
Eliminations
Revenues (5,125) (4,432)
Earnings from operations (15,478) (14,929)
Consolidated Results
Revenues 2,241,275 2,002,005
Earnings from operations 377,695 193,537
(In thousands)
Year Ended March 31,
Total costs and expenses increased $55.1 million for fiscal 2011, compared with fiscal 2010. The
increase in benefit costs were primarily due to the two reinsurance transactions entered into by Oxford
during fiscal 2011 as well as from additional reserves and commissions associated with their single
premium whole life business. Total costs at the life insurance segment increased $73.6 million for fiscal
2011, compared with fiscal 2010.
Operating expenses for Moving and Storage decreased $2.5 million primarily from reduced liability
costs associated with the rental equipment fleet offset by increases in personnel costs resulting from the
increase in the rental business. Liability costs have improved as expected losses from prior years
continue to develop positively. Depreciation expense, primarily related to the rental equipment fleet,
decreased $38.4 million. Included in this decrease is a $21.1 million improvement in the gain on disposal
of property, plant and equipment. Cost of sales and commission expenses are increasing in relation to the
associated revenues.
As a result of the above mentioned changes in revenues and expenses, earnings from operations
increased to $377.7 million for fiscal 2011, compared with $193.5 million for fiscal 2010.
Interest expense for fiscal 2011 was $88.4 million, compared with $93.3 million for fiscal 2010. The
average amount of outstanding notes, loans and capital leases payable has decreased during fiscal 2011,
compared with fiscal 2010.
Income tax expense was $105.7 million for fiscal 2011, compared with $34.6 million for fiscal 2010 due
to higher pretax earnings for fiscal 2011.
Dividends accrued on our Series A Preferred were $12.4 million and $12.9 million for fiscal 2011 and
2010, respectively.
As a result of the above mentioned items, earnings available to common shareholders were $171.0
million for fiscal 2011, compared with $53.2 million for fiscal 2010.
Basic and diluted earnings per common share for fiscal 2011 were $8.80, compared with $2.74 for
fiscal 2010.
The weighted average common shares outstanding basic and diluted were 19,432,781 for fiscal 2011,
compared with 19,386,791 for fiscal 2010.
24