U-Haul 2009 Annual Report Download - page 29

Fiscal 2008 Compared with Fiscal 2007
Listed below on a consolidated basis are revenues for our major product lines for fiscal 2008 and fiscal 2007:
2008 2007
Self-moving equipment rentals $ 1,451,292 $ 1,462,470
Self-storage revenues 122,248 126,424
Self-moving and self-storage product and service sales 217,798 224,722
Property management fees 22,820 21,154
Life insurance premiums 111,996 120,399
Property and casualty insurance premiums 28,388 24,335
Net investment and interest income 62,110 59,696
Other revenue 32,522 30,098
Consolidated revenue $ 2,049,174 $ 2,069,298
(In thousands)
Year Ended March 31,
Self-moving equipment rental revenues decreased $11.2 million in fiscal 2008 compared with fiscal 2007. The
majority of the year over year decline occurred during the first half of fiscal 2008 driven primarily by negative
trends in average one-way revenue per transaction. During the second half of fiscal 2008 we experienced
incremental improvements in pricing; however, we still finished the full year behind fiscal 2007 as it relates to
average revenue per transaction. Partially offsetting the negative pricing environment was the extra business day in
February 2008 and a marginal increase in total moving transactions compared with fiscal 2007.
Self-storage revenues decreased $4.2 million in fiscal 2008, compared with fiscal 2007 due to the deconsolidation
of SAC Holding II which was effective as of October 31, 2007 and which accounted for an $8.5 million decrease in
reported self-storage revenues in fiscal 2008 as compared with fiscal 2007. Self-storage revenues for AMERCO
owned locations increased $4.3 million in fiscal 2008 as compared with fiscal 2007 driven primarily by favorable
pricing. While average room occupancy rates at AMERCO owned locations for fiscal 2008 declined 2.6% from
fiscal 2007 to 84.0%, the Company increased the total number of rooms rented, rooms available and square footage
available in the same time period. The deconsolidation of SAC Holding II for GAAP reporting purposes reduced
consolidated self-storage revenues; however, there has been no change in the economics of our operational or
financial relationship with SAC Holding II.
Sales of self-moving and self-storage products and services decreased $6.9 million in fiscal 2008 as compared
with fiscal 2007 with $6.0 million of the decrease related to the deconsolidation of SAC Holding II. The remainder
of the decline was related primarily to lower sales of hitch and towing accessories during the second half of fiscal
2008.
Life Insurance premiums decreased $8.4 million driven by the termination of the credit life and disability program
and declining Medicare supplement premiums. During fiscal 2008, Life Insurance increased sales of its new life
insurance products.
Property and Casualty Insurance premiums increased $4.1 million due to an increase in U-Haul related business.
Net investment and interest income increased $2.4 million in fiscal 2008 as compared with fiscal 2007. The
Company receives interest income from SAC Holdings for junior notes the Company holds. Prior to the
deconsolidation of SAC Holding II in October 2007, the amounts earned from junior notes related to SAC Holding
II were eliminated. After October 2007, this interest income was no longer eliminated resulting in an increase of
$2.9 million. This was offset by decreases of the insurance companies’ investment income due to lower investment
yields and a smaller invested asset base.
As a result of the items mentioned above, revenues for AMERCO and its consolidated entities were $2,049.2
million for fiscal 2008, compared with $2,069.3 million for fiscal 2007.
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