U-Haul 2004 Annual Report Download - page 28

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rooms, increased sales of moving and storage related products and services, oÅset by increased operating
expenses. Earnings from operations at Real Estate, before consolidating entries, were $61.0 million in Ñscal
2004, compared with $56.0 million in 2003. This represents an increase of $5.0 million, or 8.8%, and was
driven by increased interest income from investments in mortgage notes.
2003 Compared with 2002
Rental revenues at U-Haul, before consolidating entries, were $1,433.4 million in Ñscal 2003, compared
with $1,425.7 million in 2002. This represents an increase of $7.7 million, or 0.5%, and was driven by a
combination of factors, including better price realization and productivity gains. Rental revenues at SAC
Holdings, before consolidating entries, were $168.0 million in Ñscal 2003 compared with $112.7 million in
2002. This represents an increase of $55.3 million, or 49.1%, and reÖects increased storage capacity from the
acquisition of several locations from U-Haul and increased storage rates. Rental revenues at Real Estate,
before consolidating entries, were $59.2 million in Ñscal 2003, compared with $68.2 million in 2002. This
represents a decrease of $9.0 million, or 13.3%, and reÖects the sale of properties to SAC Holdings.
Net sales of moving and self-storage related products and services at U-Haul were $174.1 million in Ñscal
2003, compared with $198.3 million in 2002. This represents a decrease of $24.2 million, or 12.2%, and was
driven primarily by the sale of several retail centers to SAC Holdings. Net sales of moving and self-storage
related products and services at SAC Holdings were $48.8 million in Ñscal 2003, compared with $24.4 million
in 2002. This represents an increase of $24.4 million, or 100.0%, and was driven primarily by the acquisition of
U-Haul retail centers by SAC Holdings.
Net investment and interest income at U-Haul, before consolidating entries, was $29.4 million in Ñscal
2003, compared with $22.7 million in 2002. The increase in interest income is directly related to higher
average investment balances in SAC Holdings notes. Net investment and interest income at Real Estate,
before consolidating entries, was $10.7 million in Ñscal 2003, compared with $8.3 million in 2002. The increase
in interest income is directly related to increased investments in mortgage notes.
Operating expenses at U-Haul, before consolidating entries, were $1,029.8 million in Ñscal 2003,
compared with $1,088.4 million in 2002. This represents a decrease of $58.6 million, or 5.4%, and was the
result of the sale of several retail centers to SAC Holdings and a cost reduction program. Operating expenses
at SAC Holdings, before consolidating entries, were $105.3 million in Ñscal 2003, compared with $68.2 million
in 2002. This represents an increase of $37.1 million, or 54.4%, and was primarily the result of the acquisition
of several locations from U-Haul. Operating expenses at Real Estate, before consolidating entries, were
$8.1 million in Ñscal 2003, compared with $6.1 million in 2002. This represents an increase of $2.0 million due
to more locations in Ñscal 2003 compared to Ñscal 2002.
Dealer commissions at U-Haul were $164.5 million in Ñscal 2003, compared with $153.5 million in 2002.
This represents an increase of $11.0 million, or 7.2%, and was driven by increased rentals by our independent
dealers.
Lease expenses at U-Haul, before consolidating entries, were $165.0 million in Ñscal 2003, compared
with $171.7 million in 2002. This represents a reduction of $6.7 million, or 3.9%, and reÖects a reduction in the
amount of rental equipment we leased. Lease expenses at Real Estate, before consolidating entries, were
$.06 million in each Ñscal 2003, and 2002.
Depreciation expense net at U-Haul, before consolidating entries, was $112.8 million in Ñscal 2003, net of
$7.0 million gains on the sale of Ñxed assets compared with $92.4 million in 2002, net of $9.4 million of loss on
the sales of Ñxed assets. Excluding the gains and losses on sales of Ñxed assets depreciation expense represents
an increase of $36.9 million, or 27.5%, and reÖects an increase in the number of trucks that we own.
Depreciation expense at SAC Holdings, before consolidating entries, was $21.4 million in Ñscal 2003,
compared with $15.1 million in 2002. This reÖects the acquisition of several locations from U-Haul.
Depreciation expense at Real Estate, before consolidating entries, was $5.2 million in Ñscal 2003, compared
with $(2.0) million in 2002.
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