UHAL: Second quarter truck revenue was spot on our estimate and self storage revenue was much better than our target. Net income was bolstered by a recovery in profits from truck sales. All operating revenue was also spot on our estimates.
By Ian Gilson, PhD, CFA
NASDAQ:UHAL
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AMERCO (UHAL) has reported its second quarter results and, again, our truck rental revenue and operating revenue estimates were (very) close to those reported. Profits from the sales of trucks improved significantly from a year ago. By the end of the second quarter the costs for repair was below year ago levels. This may not continue but the indications are that the extra cost associated with bring trucks back into a sellable condition is close to an end.
Truck transactions increased by about 4% and revenue per transaction were up 1.6%. Transaction growth is partially affected by changes in fleet size, the company does not discuss truck utilization changes. Prices per transaction were impacted by higher miles per transaction rather than price increase.
The storage market was good in the second quarter. With more facilities are coming on line, occupied room count increased significantly. However dollars per sq. ft. was slightly below a year ago, but higher than in the 1Q19.
Overall the second quarter continued the positive trends shown in the first quarter and we expect the good expense control to continue into the slow season.
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