U HAUL INTERNATIONAL INC - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, D.C. 20549 

FORM 10-Q 

(Mark One) 

R  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the quarterly period ended September 30, 2003 

OR

£  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the transition period from __________________ to __________________ 

Commission File Number	Registrant, State of Incorporation Address and Telephone Number	I.R.S. Employer Identification No.


1-11255	AMERCO	88-0106815
	(A Nevada Corporation)
	1325 Airmotive Way, Ste. 100
	Reno, Nevada 89502-3239
	Telephone (775) 688-6300

2-38498	U-Haul International, Inc.	86-0663060
	(A Nevada Corporation)
	2727 N. Central Avenue
	Phoenix, Arizona 85004
	Telephone (602) 263-6645

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes R No £ . 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes R No £ . 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes R No £ . 

20,514,958 shares of AMERCO Common Stock, $0.25 par value were outstanding at September 30, 2003. 

5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par value, were outstanding at September 30, 2003. 

TABLE OF CONTENTS 

PART I FINANCIAL INFORMATION 

Item 1	Financial Statements
	a). Condensed Consolidated Balance Sheets as of September 30, 2003 (unaudited) and March 31, 2003	3
	b). Condensed Consolidated Statements of Operations for the Quarters ended September 30, 2003 and 2002 (unaudited)	5
	c). Condensed Consolidated Statements of Operations for the Six months ended September 30, 2003 and 2002 (unaudited)	6
	d). Condensed Consolidated Statements of Comprehensive Income/(loss) for the Quarters ended September 30, 2003 and 2002 (unaudited)	7
	e). Condensed Consolidated Statements of Comprehensive Income/(loss) for the Six months ended September 30, 2003 and 2002 (unaudited)	8
	f). Condensed Consolidated Statements of Cash Flows for the Six Months ended September 30, 2003 and 2002 (unaudited)	9
	g). Notes to Condensed Consolidated Financial Statements	10
Item 2	Management's Discussion and Analysis of Results of Operations and Financial Conditions	29
Item 3	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4	Controls and Procedures	45

PART II OTHER INFORMATION 

Item 1	Legal Proceedings	47
Item 2	Not applicable
Item 3	Defaults Upon Senior Securities	48
Item 4	Not applicable
Item 5	Other Information	48
Item 6	Exhibits and Reports on Form 8-K	49

PART I. FINANCIAL INFORMATION 

ITEM 1. Financial Statements 

AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES AND 

SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES 

CONDENSED CONSOLIDATED BALANCE SHEETS 

	September 30, 2003		March 31, 2003
	(Unaudited)
Assets	(in thousands)
Cash and cash equivalents	$	151,622	$	66,834
Trade receivables, net		256,110		255,796
Notes and mortgage receivables, net		11,531		10,809
Inventories, net		56,829		53,270
Prepaid expenses		25,280		21,846
Investments, fixed maturities		789,303		860,600
Investments, other		486,869		389,252
Deferred policy acquisition costs, net		92,735		105,100
Deferred income taxes		—		32,242
Other assets		94,112		63,600

		1,964,391		1,859,349
Property, plant and equipment, at cost:
Land		158,572		157,987
Building and Improvements		749,406		747,853
Furniture and Equipment		292,702		291,383
Rental trailers and other rental equipment		154,260		149,707
Rental trucks		1,195,143		1,140,294
SAC Holdings property, plant and equipment (1)		726,710		757,292

		3,276,793		3,244,516
Less: Accumulated depreciation		1,351,534		1,298,199

Total property, plant and equipment		1,925,259		1,946,317

Total assets	$	3,889,650	$	3,805,666

(1)  SAC Holdings property, plant and equipment totaled $984.9 million and $1,015.5 million before eliminations, inter-company eliminations were $258.2 million and $258.2 million at September 30, 2003 and March 31, 2003 respectively. 

The accompanying notes are an integral part of these consolidated financial statements. 

AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES AND 

SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES 

CONDENSED CONSOLIDATED BALANCE SHEETS, CONTINUED 

	September 30, 2003			March 31, 2003
	(Unaudited)
Liabilities and Stockholders' Equity	(in thousands)
Liabilities:
Payables, insurance reserves and accrued expenses	$	367,129		$	387,017
AMERCO's notes and loans payable		83,182			954,856
SAC Holdings’ notes and loans payable non-recourse to AMERCO		587,956			589,019
Policy benefits and losses, claims and loss expenses payable		838,364			836,632
Liabilities from investment contracts		634,689			639,998
Other policyholders’ funds and liabilities		34,030			30,309
Deferred income		33,834			40,387
Deferred income taxes		14,757			—
Liabilities subject to compromise		875,372			—

Total liabilities		3,469,313			3,478,218

Commitments and Contingent Liabilities:
Stockholders' equity:
Serial preferred stock, with or without par value		—			—
Series A preferred stock, with no par value		—			—
Series B preferred stock, with no par value		—			—
Serial common stock, with or without par value		—			—
Series A common stock, of $0.25 par value		1,441			1,441
Common stock, of $0.25 par value		9,122			9,122
Additional paid-in capital		235,784			235,784
Additional paid-in capital – SAC		3,199			3,199
Accumulated other comprehensive loss		(25,479	)		(54,278	)
Accumulated other comprehensive loss-SAC		(3,051	)		(1,487	)
Retained earnings		633,501			568,222
Cost of common shares in treasury, net		(421,378	)		(421,378	)
Unearned ESOP shares		(12,802	)		(13,177	)

Total stockholders' equity		420,337			327,448

Total liabilities and stockholders' equity	$	3,889,650		$	3,805,666

The accompanying notes are an integral part of these consolidated financial statements. 

AMERCO (Debtor in Possession) AND CONSOLIDATED SUBSIDIARIES AND 

SAC HOLDING CORPORATIONS AND CONSOLIDATED SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

	Quarters Ended September 30
	2003		2002
			(Restated)
(Unaudited) (In thousands, except share data)
Revenues:
Rental revenue	$	482,972	$	466,341
Net sales		65,627		62,446
Premiums		67,480		78,363
Net investment and interest income		11,378		10,359

Total revenues		627,457		617,509
Costs and expenses:
Operating expenses		304,425		320,805