Amerco (UHAL) has reported a 20.23 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $65.23 million, or $3.33 a share in the quarter, compared with $81.77 million, or $4.17 a share for the same period last year.
Revenue during the quarter grew 6.17 percent to $790.68 million from $744.75 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 90.14 percent. Total expenses were 83.28 percent of quarterly revenues, up from 78.80 percent for the same period last year. That has resulted in a contraction of 448 basis points in operating margin to 16.72 percent.
Operating income for the quarter was $132.20 million, compared with $157.90 million in the previous year period.
"Revenue gains in our core rental business were driven by transaction growth," stated Joe Shoen, chairman of AMERCO. "I am greatly encouraged by the Trump administration and since the inauguration have committed to 3,000 additional built-in-America Ford trucks. I expect growth to accelerate and I want U-Haul ready to serve customers moving to a new job or improved living arrangements."
Debt increases substantially
Amerco has witnessed an increase in total debt over the last one year. It stood at $3,198.44 million as on Dec. 31, 2016, up 31.91 percent or $773.76 million from $2,424.67 million on Dec. 31, 2015. Amerco has witnessed an increase in long-term debt over the last one year. It stood at $3,198.44 million as on Dec. 31, 2016, up 31.91 percent or $773.76 million from $2,424.67 million on Dec. 31, 2015. Total debt was 34.44 percent of total assets as on Dec. 31, 2016, compared with 31.24 percent on Dec. 31, 2015. Debt to equity ratio was at 1.20 as on Dec. 31, 2016, up from 1.09 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.56 for the quarter from 6.21 for the same period last year.
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