U-Haul 2008 Annual Report Download - page 32

Total costs and expenses increased $31.2 million in fiscal 2008 as compared with fiscal 2007. The largest increase
is in depreciation expense associated with the rotation of our fleet. Conversely, with the shift in focus from operating
leases to purchases of new rental trucks lease expense decreased in fiscal 2008 as compared with fiscal 2007. The
Company nets gains and losses from the disposal of property and equipment against depreciation. Included in
depreciation are gains on the sale of real estate of $12.7 million and $4.4 million in fiscal 2008 and fiscal 2007,
respectively. Repair and maintenance costs included in operating expenses declined for the year due to the rotation
of older trucks out of the active rental fleet. These declines were offset by other operating costs including personnel,
property tax and certain legal-related expenses.
Equity in the earnings of AMERCO’ s insurance subsidiaries increased $10.0 million in fiscal 2008 as compared
with fiscal 2007 primarily due to reduced operating expenses and benefits and losses.
As a result of the above mentioned changes in revenues and expenses, earnings from operations decreased to
$193.0 million in fiscal 2008, compared with $217.9 million for fiscal 2007.
Fiscal 2007 Compared with Fiscal 2006
Listed below are revenues for our major product lines at our Moving and Storage Operating Segment for fiscal
2007 and fiscal 2006:
2007 2006
Self-moving equipment rentals $ 1,462,470 $ 1,489,429
Self-storage revenues 106,498 100,873
Self-moving and self-storage product and service sales 208,677 207,119
Property management fees 23,951 23,988
Net investment and interest income 34,161 30,025
Other revenue 25,994 34,894
Moving and Storage revenue $ 1,861,751 $ 1,886,328
Year Ended March 31,
(In thousands)
During fiscal 2007, self-moving equipment rental revenues decreased $27.0 million, compared with fiscal 2006
with the majority of the variance occurring during the second half of the year. The Company finished fiscal 2007
with increases in one-way transactions along with increases in the average inventory of the entire fleet. However,
offsetting these factors were a decrease in average revenue per transaction primarily due to one-way pricing, the lack
of certain mid-size trucks during the spring and summer months of fiscal 2007 and decreased fleet utilization. The
Company’ s response to competitive pricing issues further lowered self-moving rental revenues.
Self-storage revenues increased $5.6 million for fiscal 2007, compared with fiscal 2006 primarily due to improved
pricing. The Company has increased the number of rooms and square footage available period over period through
the expansion of existing facilities and the acquisition of new facilities.
Net investment and interest income increased $4.1 million primarily due to larger average invested cash balances
combined with higher interest rates.
Other revenues decreased $8.9 million for fiscal 2007, compared with fiscal 2006. Fiscal 2006 included several
non-recurring items.
The Company owns and manages self-storage facilities. Self-storage revenues reported in the consolidated
financial statements for Moving and Storage represent Company-owned locations only. Self-storage data for our
owned storage locations was as follows:
2007 2006
Room count as of March 31 127 123
Square footage as of March 31 10,062 9,592
Average number of rooms occupied 108 107
Average occupancy rate based on room count 86.6% 87.9%
Average square footage occupied 8,653 8,516
Year Ended March 31,
(In thousands, except occupancy rate)
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