Q1 2025 U-Haul Holding Co Earnings Call Transcript
Key Points
- U-Haul Holding Co (UHAL) reported a year-over-year increase in equipment rental revenue for the first time in eight quarters, marking a 1.5% rise.
- The company saw gains in self-storage revenue, which increased by $17 million, or about 8%, with average revenue per occupied foot improving across the portfolio.
- U-Haul Holding Co (UHAL) has been successful in rotating older equipment out of the fleet, resulting in increased equipment utilization.
- The company continues to expand its self-storage units, adding 17 new store locations and nearly 64,000 new units, indicating a strong growth strategy.
- U-Box revenue, part of the company's other revenue line, saw a significant increase, contributing to overall revenue growth.
- First quarter earnings decreased to $195 million from $257 million the previous year, with a significant portion of the decline due to reduced gains on the disposal of retired equipment.
- The increased cost of new rental trucks has led to higher depreciation expenses, impacting profitability.
- Proceeds from the sales of retired equipment decreased by $49 million, reflecting challenges in the resale market.
- Average occupancy across the self-storage portfolio declined by 280 basis points to 80%, indicating potential challenges in filling new units.
- Operating expenses increased by $21.5 million, with personnel costs, liability costs, and property taxes contributing to the rise, putting pressure on margins.
Good day, everyone, and welcome to today's U-Haul Holding company first-quarter fiscal 2025 Investor Call. At this time, all participants are in a listen-only mode. (Operator Instructions)
Please note, this call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Sebastien Reyes. Please go ahead.
Good morning, and thank you for joining us today. Welcome to the U-Haul Holding Company first quarter fiscal 2025 investor call. Before we begin, I'd like to remind everyone that certain of the statements during this call, including, without limitation, statements regarding revenue, expenses, income and general growth of our business, may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.
Forward-looking statements are inherently subject to risks and uncertainties
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