U-Haul 2004 Annual Report Download - page 24

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Fiscal 2004 Compared With Fiscal 2003
Revenues for AMERCO and its consolidated entities were $2,167.5 million for Ñscal year 2004. This
compares to $2,132.4 million for Ñscal year 2003. Earnings from operations were $126.9 million in Ñscal 2004
compared with $109.2 million for Ñscal year 2003. We experienced 6.4% revenue growth, before consolidating
entries, in our Moving and Self-Storage segment in Ñscal 2004 compared with Ñscal 2003. Combined earnings
from operations before consolidating entries, in our Moving and Self-Storage segments were $266.1 million in
Ñscal 2004, and reÖect an improvement of $70.3 million, or 35.9% in Ñscal 2004 compared with Ñscal 2003. At
the Oxford Life Insurance Company, revenue decreased 4.8% before eliminating entries, primarily as a result
of its rating downgrade by A.M. Best in 2003. This downgrade resulted from liquidity issues that faced
AMERCO. Earnings from operations at Oxford were $11.3 million in Ñscal 2004, reÖecting a reduction in
write-downs of investments due to other than temporary declines and a solid turnaround from the $1.4 million
loss reported in Ñscal 2003. At RepWest, revenues declined 34.3%, reÖecting its strategic decision to exit
unproÑtable non-U-Haul lines of business. The beneÑts and losses on these unproÑtable lines adversely
aÅected its proÑtability. As a result, earnings from operations at RepWest were a loss of $36.0 million in Ñscal
2004, compared with a loss of $8.0 million for Ñscal 2003.
Interest expense for Ñscal 2004 was $121.7 million. This compares to $148.1 million in Ñscal 2003, which
included our early termination of BBAT payments of $26.5 million. Income tax expense was $8.1 million in
Ñscal 2004 compared with a income tax beneÑt of $13.9 million in Ñscal 2003. This reÖects pretax earnings
and an increase in current year tax of $4.8 million as a result of our settlement with the IRS for tax audits
related to 1996 and 1997. As a result of the abovementioned items, there was a loss of $2.9 million in Ñscal
2004 compared with a loss of $25.0 million in Ñscal 2003. Included in Ñscal 2004 results are $44.1 million of
non-recurring Ñnancial restructuring costs ($27.3 million on an after-tax basis) compared with $6.6 million of
non-recurring Ñnancial restructuring costs ($4.0 million on an after-tax basis) included in Ñscal 2003.
Preferred stock dividends paid or accrued were $13.0 million in Ñscal 2004 and Ñscal 2003. Loss available to
common shareholders were a loss of $15.8 million in Ñscal 2004 compared to a loss of $37.9 million in Ñscal
2003.
Fiscal 2003 Compared With Fiscal 2002
Revenues for AMERCO and its consolidated entities were $2,132.4 million for Ñscal 2003. This
compares to $2,193.6 million for Ñscal year 2003. Earnings from operations were $109.2 million in Ñscal 2003
compared with $42.1 million for Ñscal 2002, which included losses from RepWest of $72.4 million in Ñscal
2002 compared with losses of $8.0 million in Ñscal 2003. We experienced a 3.4% revenue growth, before
consolidating entries, in our Moving and Self-Storage segments in Ñscal 2003 compared with Ñscal 2002.
Combined earnings from operations, before consolidating entries, in our Moving and Self-Storage segments
were $195.8 million in Ñscal 2003, compared with $143.9 million in 2002, reÖecting an improvement of
$51.9 million, or 36.1% from Ñscal 2002. At the Oxford Life Insurance Company, revenue declined 4.0%.
Earnings from operations were a loss of $1.4 million in Ñscal 2003 compared with a proÑt of $5.6 million in
Ñscal 2002, reÖecting write-downs of investments due to other than temporary declines. At RepWest revenues
declined 38.1% in Ñscal 2003 compared with Ñscal 2002. Earnings from operations were a loss of $8.0 million
in Ñscal 2003 compared with a loss of $72.4 million in Ñscal 2002.
Interest expense for Ñscal 2003 was $148.1 million. This compares to $109.5 million in Ñscal 2002, and
includes our early termination of BBAT payments of $26.5 million in Ñscal 2003. Income tax beneÑt was
$13.9 million in Ñscal 2003 compared with an income tax beneÑt of $19.9 million in Ñscal 2002. This reÖects a
lower pretax earnings loss. Net loss was $25.0 million in Ñscal 2003 compared to $47.4 million in Ñscal 2002.
Preferred stock dividends paid or accrued were $13.0 million in Ñscal 2003 and Ñscal 2002. As a result of the
above mentioned items, our earnings (loss) available to common shareholders were a loss of $37.9 million in
Ñscal 2003 compared with the loss of $60.4 million in Ñscal 2002. Included in 2003 results are $6.6 million of
non-recurring Ñnancial restructuring costs ($4.0) million on after-tax basis). There were no non-recurring
Ñnancial restructuring costs in Ñscal 2002.
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