U-Haul 2016 Annual Report Download - page 32

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26
Listed below are revenues and earnings from operations at each of our operating segments for fiscal
2015 and 2014. The insurance companies’ years ended December 31, 2014 and 2013.
Year Ended March 31,
2015
2014
(In thousands)
Moving and storage
Revenues
$
2,800,438
$
2,571,950
Earnings from operations before equity in earnings of subsidiaries
610,430
584,681
Property and casualty insurance
Revenues
59,275
51,644
Earnings from operations
23,477
19,332
Life insurance
Revenues
219,656
215,528
Earnings from operations
29,755
26,671
Eliminations
Revenues
(4,838)
(3,870)
Earnings from operations before equity in earnings of subsidiaries
(638)
(470)
Consolidated Results
Revenues
3,074,531
2,835,252
Earnings from operations
663,024
630,214
Total costs and expenses increased $206.5 million for fiscal 2015 as compared with fiscal 2014. The
Moving and Storage operating segment accounted for $202.7 million of the total increase for fiscal 2015
as compared with fiscal 2014. Operating expenses increased $165.7 million primarily from spending on
personnel, rental equipment maintenance and operating costs associated with the U-Box program.
Commission expenses increased in relation to the associated revenues. Depreciation expense, net,
increased $18.6 million while lease expense decreased $20.7 million as a result of the Company’s
continued focus in financing new equipment on the balance sheet versus through operating leases.
During the fourth quarter of fiscal 2015 the Company recorded an accrual related to the PEI litigation
resulting in an increase in operating expenses of $60.7 million.
As a result of the above mentioned changes in revenues and expenses, earnings from operations
increased to $663.0 million for fiscal 2015, compared with $630.2 million for fiscal 2014.
Interest expense for fiscal 2015 was $97.5 million, compared with $92.7 million for fiscal 2014 due to
an increase in average borrowings partially offset by a decrease in average borrowing costs. In addition,
we incurred costs associated with the early extinguishment of debt during the second quarter of fiscal
2015, which included $3.8 million of fees and $0.3 million of transaction cost amortization related to
defeased debt.
Income tax expense was $204.7 million for fiscal 2015, compared with $195.1 million for fiscal 2014.
The increase was due to higher pretax earnings for fiscal 2015.
As a result of the above mentioned items, earnings available to common shareholders were $356.7
million for fiscal 2015, compared with $342.4 million for fiscal 2014.
Basic and diluted earnings per common share for fiscal 2015 were $18.21, compared with $17.51 for
fiscal 2014.
The weighted average common shares outstanding basic and diluted were 19,586,633 for fiscal 2015,
compared with 19,558,758 for fiscal 2014.