Q4 2022 Amerco Earnings Call
Yes.
For the quarter and the fiscal year trucks trailers and towing devices all had revenue increases across both the in town and one way markets.
The revenue improvements were a combination of transactions as well as average revenue per transaction.
As we have progressed through the year the rate of transaction growth has moderated.
We've seen improvements in U move revenue continue now into April and May.
As we reported our end of the year truck fleet count increased to just over 186000 trucks.
We did increase the amount of spending on the fleet. This year is the availability of new trucks improved compared to fiscal year 2021.
However, it was still well below where we wanted to and frankly needed it to be.
Capital expenditures on new rental equipment were $1 $61 million for the fiscal year 2022, compared with $870 million.
For fiscal 2021.
For the fiscal years 2018 through 2020, we had averaged just under $1 $2 billion a year in growth fleet acquisitions, whereas the last two years now we've averaged just under $1 billion.
Going into next year, we're projecting around $1 8 billion in gross equipment purchases.
Of course that depends upon manufacturer availability.
We've slowed the number of units that we retire and sell and this has resulted in the growth of the rental fleet.
Proceeds from the sale of retired equipment increased by $75 million to a total of $602 million. This last year.
Sales volume was below fiscal 2021 levels, but proceeds per unit were elevated.
Self storage performance remained strong.
Our occupied unit count at the end of March increased by 91530 units compared to March of the previous year.
And that trend continued through April .
Revenues were up $37 million or 28% for the quarter and we finished the 12 months up $140 million or 29%.
Our all in blended occupancy rate for the entire portfolio for the quarter increased from 74% last year to 83% this year.
For the subset of those facilities that have stabilized and tell us the definition of being at 80% for the last two years.
Occupancy increased from the fourth quarter of last year to this year by 250 basis points to 96%.
We also had 99 more properties that fit this definition this year versus the same time last year.
We are seeing increased revenue per foot, indicating improvements to our average rates as well.
Spending on capital expenditures related to real estate were $1 billion.
For fiscal 2022, that's up from $505 million last year.
We currently have somewhere around $7 million 300000, net rentable square feet in development across 152 projects.
We still have about 120 properties behind that that we owned but have not yet started building on and.
And we have somewhere around $260 million of deals that are currently in escrow that we may or may not close on.
Operating earnings at our moving and storage segment increased by $17 1 million to $134 4 million for the quarter.
And for the full year, we saw a $670 million increased to $1 billion $577 million for the year.
Operating expenses for the quarter were up.
Just under $127 million, our two largest operating expenses personnel and fleet repair and maintenance accounted for nearly half of the increase.
While increases of personnel and personnel have stayed in line with revenue increases repair and maintenance during the fourth quarter increased faster than revenue.
This is the result of the slowing of our fleet rotation program combined with increased miles driven by our customers.
Other expense categories, we saw increased faster than revenue during the quarter include the liability costs associated with the fleet equipment licensing freight expense.
A big chunk of that associated with U box and cost of goods sold associated with our moving and storage retail product sales.
At March 31.
2022, our cash and availability from existing loan facilities.
At our moving and storage segment totaled $2 $723 million.
With that I would like to hand, the call back to Joe our operator to begin the question and answer portion of the call.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Joe I'm going to go ahead and ask two questions that came in ahead of the call from Craig Inman at Artisan partners.
The first is we've seen some businesses give back revenue gains from a COVID-19 induced bump.
What is management is seeing with regards to activity in the rental business and how are you planning future capacity in the truck rental business.
Okay I'll take the first.
Ed.
We're not seeing it.
So step back.
In absolute dollars, but I think that the.
Rate of increase of revenue.
The moving and storage business.
<unk> will fall to pre Covid levels, that's just a guess.
Don't know that for a fact.
Okay.
There has been some rate gain through that and I don't think were going to have to give that back I think that's going to stick.
So I don't see the.
It's so much a bump is may be a step up.
Im starting to see that's what I've done.
Working towards we've already.
Barry.
Across the business plan too.
Probably too low the customers through Cobra try to be the vendor.
It didn't.
It was their doors didn't.
Rebuffed the customers so that when.
<unk> went away.
These people would stick.
So we probably got some business from competitors and we for sure.
Got some business from people who've never really.
Used our products and services before what was the second half of the question.
How are you planning future capacity in the truck rental business.
Right now all our plans have been.
Forest.
Due to our inability to secure.
The number of trucks that we wanted to get.
So very.
Very much if you look for the next 12 months, it's going to be.
As Jason alluded to driven very much by.
What capacity the manufacturers now.
They are under incredible pressure.
Two.
Change their product line to an electric version and the.
Simply.
Don't have.
Product that meets that description.
So they've kind of curtailed.
Production of what we would normally consider our fleet.
Vehicles in the hope that they get something else, but that's something else has not yet emerged.
So there is just simply.
And under supply of vehicles of the type that we would use.
It's really going to drive our fleet plan over the next 12 months.
The second question from Craig can you talk about the rising inflation influences in the business, where do they hurt the most and where is there opportunity to improve.
Well clearly we're seeing inflation.
Cost of new vehicle acquisition no question about that.
The.
We're building stores as Jason alluded to with construction is up.
I think that.
Property.
Had already insulated.
A year ago. So our current results reflect the inflation of property. There is some inflation in construction expenses that we're incurring now.
Wage inflation is very real and we're probably going to realize more of that this year.
Then we did last year, but thats difficult.
To actually say.
On the other hand.
<unk> rental rates arent fleeting so to some extent the fact that we have.
Some older vehicles in the fleet that we acquire.
Prior prices.
Rates in fleet.
Closer to what it's cost them for new equipment, where we might take a little might actually get a few dollars.
Oh.
In storage.
I don't know if any of you monitor what.
Fairly recently built storage is selling forward the prices at selling floor.
Ply more rate inflation. So the people who are in there is it looks like to me like billions of dollars going into that market.
So a bunch of people are going in and the prices they are paying.
Inflation very explicitly built in.
If those rates stick that will pick up a little bit of margin on that also.
Jason you got something you would add to that sure I'll just talk about what what has affected us most in results for this year is.
The more obvious cost of freight expense for example, us shipping things around to our various stores and then us shipping.
Box containers around the country those costs have elevated quite a bit and we've seen that affect margin this year.
On cost of goods sold for our retail products hitches propane.
Moving supplies.
We're seeing those costs run through in.
We're one of the.
Dwindling number of companies that still utilizes the LIFO method of accounting so that tends to accentuate cost of goods sold.
In an inflationary environment.
The equipment.
<unk> and the self storage side those are costs that we're incurring economically and then.
As far as the income statement our earnings go they will bleed into earnings over time is as depreciation steps up.
I'll make one more gratuitous comments.
And energy costs.
Our way up.
Obviously, it's in fuel.
And it's in many many other things in terms of consumer sentiment.
Negative.
Our experience is people will move.
Order distances.
<unk> in lower transactions lower transaction value.
I don't have a I don't have that going on presently, but theres only so much people are willing to take right now people still seem reasonably optimistic but the.
They see the price of fuel they discuss it in front of our salespeople at the counter.
I think we have.
As fuel efficient are probably are more fuel efficient fleet.
Then our truck rental peers.
But still if people.
Get too concerned about.
Cost of energy they are just going to get negative in pulling their horns, which.
Has not happened, yet, but very well could happen over the next 12 months.
So I think we're ready to go back to <unk>.
Queued up for questions.
Alrighty.
First question will come from Steven Ralston with Zacks. Please go ahead.
Good morning.
First can you hear me.
Yes, we hear you good Greg.
And the last the prior to this last quarter of the prior six quarters.
Mendes operating leverage with margins expanding.
Now we've seen the first quarter, where basically the rise in expenses is equal to the.
A rise in revenue.
But as Jason said that means you've also captured the margin increase of the year ago quarter.
As I go through my financial model.
Seems like it comes down to those two expenses you talk about that.
Personnel expenses in the fleet maintenance.
Costs are.
The reason.
With just the steady margin going forward.
Could you describe the financial dynamics.
As you implement or Reaccelerate your fleet.
Rotation program, how that will affect you.
Our expenses relative to revenues.
Sure.
This is Jason I'll start off with that one.
The biggest effect is repair and maintenance so where it's.
It's not necessarily a one for one trade off as as depreciation decreases which is largely a signal that your fleet is aging. So then your maintenance costs go up.
Whats accentuating that right now is.
Customer activity more miles are being driven on the equipment. So we're seeing much more along the lines of preventative maintenance and.
When you couple that with the labor market, which has made it more difficult for us to hire mechanics, and keep them stay fully staffed on mechanics, which then.
Translates into using more outside repair assistance, which usually comes out a little bit higher cost and also.
<unk> also takes a little bit longer for them to complete the work. So we're getting a hit on those two fronts for for the year for the 12 months repair and maintenance was not margin negative but to your point it's been getting.
It's been tightening up through the year and then in the fourth quarter. It turned margin margin negative so.
It's not as it's not necessarily a one for one but as we bring in more equipment and we will then sell the equipment that requires the highest amount of maintenance.
That should have an effect on our repair.
Thank you.
In the.
I believe it was the 10-K.
Management estimates that the.
Money put towards increasing the fleet in fiscal 2023 will be $1 1 billion, but here on the call. You mentioned it was one 8 billion, but you mentioned it was gross.
Could you explain the discrepancy.
The difference is how much we think we're going to sell so the net number that we quote in the 10-K is the gross sales of right around $1 8 billion less what we think we're going to bring in and sales proceeds and we.
We used the sales proceeds and to offset the cost of the new equipment.
So.
That's why we net that out.
Alright, thank you.
<unk>.
Moving to the self storage area.
The number of locations and increased about three 5%, but the square footage was almost double that at about six 5%.
Are you moving.
Strategically to larger facility.
I'll start with that one a big chunk of what happens there is we do our storage projects typically in phases. So we will open up a storage facility, maybe with as little as 10 to 12000 square feet available and then kind of tranche it out into additional phases. So that.
Won't show up as a new facility, but that but we are adding square footage to existing facilities.
Hi.
And while it was a surprise to me that you are seeing this increase in.
Square footage youre at.
Average rate per foot is also going up.
Strong market now, Steve it's just a strong storage market Theres no.
No getting around it.
Mhm.
Just as an interestingly when you see what other people are paying.
They are.
They are paying based on they believe theyre going to see.
So the rate increases I can't predict the future.
As I've said before here I think there'll be some point here. Some of this has gotten those over in the storage business just like any other.
Thing, where everybody gets real exuberant.
There's plenty of people investing tremendous sums of money.
Believe that it is going to go up if it goes up will go up with it I can assure you of that.
But I can't.
I can't talk.
Till we make.
But I think are a little bit more conservative assumptions.
What I see other people in the industry doing when we do our financial analysis and that kills a bunch of projects.
So it breaks the heart of my field people, but.
We have a pretty.
Stringent deal and we just are unwilling to assume quite as rosy as Don maybe thats going to cause me or it has caused me to lose some deals there.
Some deals I didn't buy two years ago that the last two years of rate inflation.
That made good deals so.
But still I'm, a pretty hard one to stampede on that so.
Yes.
Kind of what's going on I think that there's still going to be some rate increase in the storage business and the other thing you have to know about the storage businesses very localized it's hard to generalize and say well what are rates doing.
In new England.
Sure.
It gets real community oriented so.
We could have a little nose over.
Some markets and other markets could see real strong.
Trying to pick those locations of course, but I think hurdle.
I have a little more chance of seeing staying strong.
And I suspect all my competitors are too they don't share that with me.
Intelligent people, so I assume theyre trying to but of course, that's what we're trying to do is pick those locations.
One thing that's kind of a room.
So different in our portfolio today most of our vacancy is at places that have substantial vacancy we've rented up.
Do you have a.
Public number on what our occupancy as you did on share so our average occupancy for the whole portfolio is eight <unk>.
Under 83%, but we have 80% of our facilities now are over 80% occupancy and and and at those locations, we're averaging 95% occupancy so.
Well over three quarters of our number of locations that is above 80% and theyre, averaging 95% occupancy there. So you can see that.
I have stores that don't have a lot of opportunity.
The increase rooms rented but they still have an opportunity was right and we're working rates and still getting some.
Juice out of the women's so.
Okay.
The biggest thing I would say is the market is assuming rate increases.
We are trying to develop.
In areas, where we think.
The rate will hold.
Great.
Alright, Thank you for taking my questions.
Sure.
Our next question will come from Adam Sues with Yacktman asset management. Please go ahead.
Hi, everyone glad to our balance sheet with you.
Sure.
As you know we've been investors in America for a number of years.
Now one of the largest if not the largest.
Shareholders of the company.
Certainly like the company's positioning and frankly the value that we see in both of the pieces, but we've also been pretty quiet shareholders and thought it was long overdue.
Great job for a couple of questions today.
Maybe we can maybe start with first on the truck side.
Can you expand on the previous comments around the main drivers of the truck business and a little more detail.
You talked about the margin pressure this quarter, but overall the business is up significantly.
Since prior to the pandemic, you talked a little bit about the step up.
Much of that is pricing versus number of transactions versus number of miles driven.
Which one worries you the most about potentially reverting back to pre pandemic levels.
I'll start out and say what I'm worried about most and Thats overall transactions over my.
For what I've seen is that.
Good times or bad times with changes as the distance people drive not whether they move.
Yeah.
The pandemic.
I was a little more mobility or something I'm not quite sure.
But anybody knows absolutely.
If transactions whole roadmap, we will manage transactions to get whatever revenue is there.
If people become pessimistic the revenue available will decline, but there'll still be movers.
He'll still be doing business with us in women.
Consumer sentiment improves we'll get we'll get some longer moves and some readout of it so.
I watch transactions very very closely I'll.
I'll, let Jason speak to $2. He is always managing the dollars were close to <unk>.
So Adam.
Fiscal year, I would say about half of the increase was coming from transactions and the other half was split.
Between.
Number of miles driven by our customers and the rate that we're charging per mile.
And then if you compare that with the fourth quarter.
Transaction portion of the increase was probably down to closer to a quarter of the increase.
With with miles and then.
Our average revenue per transaction, which is a combination of miles in rate.
<unk>.
The other part of it so as the year has gone on part of that is the first quarter comparison that we had this year versus the first quarter last year, which was hindered by by Covid. So.
And that net naturally going to come down a little bit.
We're still seeing a.
A reasonably good transaction increase on top of.
A very strong quarter last year per transaction.
Okay.
And my second question on the truck side.
You mentioned kind of theirs.
In town news and then there is sort of one way moves maybe across the country are moving to a different state.
How do you think about the competitive advantage of U haul on the one way side of the business.
Is there any can anywhere and compete with you there and how much of a truck revenue and profit.
Comes from that one way moving business versus sort of Intel boots.
I'll talk to the competition, our CEO , Jason has any comment on that.
Margin.
U haul has the.
Most comprehensive distribution network.
Which means we're more likely to be at both your origin and destination.
Which is important to the customer because part of their economy is.
Or does it have to go to get the trucking or does it have to go drop it off so.
Even if.
Competitor might have a rate differential.
The unspoken part of this year to drive the truck and other.
<unk> smiles to drop it off and get yourself back to you.
So that erodes a little bit.
The price advantage that might have so.
Yeah.
On the other hand.
Our network is much more expensive to maintain.
I don't have.
Real hot numbers, but.
<unk>, probably have somewhere around 3500 outlets something like that maybe a little less budget maybe.
3000 minus so.
You can see them going up against us with maybe.
22, five for 23000 outlets.
Sure.
We just have a much more likelihood to be in your neighborhood.
So that affects the economy to move it also affects.
The customers' awareness at the services available because.
And they're normal.
Daily travels ACR locations.
And so they perceive.
Self move is available in their community and if they don't see.
The competitor well, it's not quite as clear no.
The internet.
As always touted as its going to overcome that hasnt yet overcome.
That's not to say it won't.
Yes.
We have between us and the competitors we have different.
<unk>.
If I had to guess.
They get a higher margin on their business if they don't they are fools because they have.
Much less.
Apparatus to manage so.
I was running their deal I'd run the higher margins you hold those but U haul.
Overall, our strategy has been relatively successful one.
Jason I don't know if you have any thoughts on relative margin sure. So.
As far as the revenue split goes our Intel business is a little over half of the revenue.
The one way business is little less than half and.
The way we have those structured.
From a profitability perspective, it doesn't really matter to us where the transaction comes from it can be one way it could be in town it could be at a company store or it could be on a dealer.
If we're doing things right it really shouldnt manage to the bottom line.
Okay. That's helpful.
Moving on to the storage side.
We've discussed on prior calls it's hard to disentangle the truck business in the storage business, but.
Maybe just qualitatively if you can discuss more detail how you think about.
The synergies between the two of them that make it make them better together.
How many truck customers are renting storage or if you compare to <unk>.
Standalone U haul storage only operation to one that had both.
How are the financials different for the one that offering both storage and truck business together.
So the going in cost is substantially greater if youre in the truck rental business.
You have to have more real estate.
So let's take the.
Some of the cube Smart thing Julien Bacon Squeezer operation into an acre.
And so.
If we do that we won't we won't have the truck rental component will just have storage and we do that.
But not normally so there is a going in cost that's different.
Then you get into a very hazy area, which is how do you allocate cost.
Time.
Yes.
If you go to a storage place, mostly they are sitting on their apps waiting for something to happen that's basically true.
And.
That's what holds wages down on that business, because they're not creating that much value per hour worked.
And.
Okay.
You go to one of our places.
They are probably in the.
Sweat and there are probably figure they're going to be responder in two hours.
They are more or less moving places not everywhere Ive got some does it.
The volume of business.
Engages more personnel that can be good or bad we're going to see personnel costs go up so.
Maybe reflect a little rough ran off site I don't.
I don't know I think theyre just different strategies I don't know that one is.
There is some days I wish I had more stores like cube, smart and Theres other days I'm glad I don't so.
<unk>.
There is a <unk>.
Strong coincidence of moving and storage you could go.
In the 19 thirties they were.
Related.
Beacons, moving and storage Big company in the thirties.
So I always tell micros like hotdogs.
Baseball.
They coexist.
<unk> exists now.
<unk> always capture of the business, while I'm sure. There is sometimes you don't capture the business but.
And and we know statistically that a great number of it.
Public storage customers are cube smart customers move in with U haul equipment.
Inside our Google always treat those will widen that we.
Yet that move and why did they get that move in and Theres, a bunch of different reasons for it sometimes.
It's mediocre performance on our part, but theres other very legitimate reasons why consumers make there.
George preferences storage is a very.
Geographic specific.
Product and.
If you have the location there.
Youre going to get some business.
So.
Sure.
How many customers move into.
How many U haul customers move into storage.
I can answer it the other way probably.
25% of people, who move into storage user rental truck.
Okay.
Been a fairly consistent.
Number maybe not to the exact percentage point, but roughly thats been pretty constant for 20 years. So.
People use rental equivalent of moving in storage and.
Being able to be one stop shop I think is positive.
But there are just different strategies between what.
US and our storage competition hasn't I don't think.
Either one is.
Exclusive of the other intervals both good strategies.
Im sure that public storage benefits from Hudson renting trucks.
That isn't how we planned it.
That's how that works sometimes.
Okay.
Okay.
My last question today really.
Following up maybe.
Some comments that you've made in the previous call when you're sort of listening to shareholder feedback.
Our priorities for capital and capital allocation.
And if theres been any sort of changes in thinking on the topic I know, there's a big need to sort of rebuild the truck the truck fleet, which we discussed and so you have a big step up in Capex.
Continuing to invest on the storage side.
But.
We're conservative investors and I think you've made as a company very conservatively debt levels are lower than that.
Pre pandemic levels.
Way more conservative than storage peers.
Pay a small token dividend.
Never repurchased stock, which is which is unusual.
Curious has there been any change in thinking and sort of how are you thinking about capital and the direction and priorities of the business going forward.
So we're doing a lot of thinking I don't know that theres anything thats.
So I can say publicly.
It's a very active discussion on heavy.
Fairly active board of people, who I think are.
Very balanced outlook and they put a load.
But a lot of effort into having.
Long term wealth maximization for the shareholders.
Okay.
I don't know if theres anything I can say beyond that without it'd be just be talking.
Just make the SEC matter or something.
But.
On the operational front, though.
I don't think we have changed any of our plans going into next year and allocating between equipment or self storage or are you box. Our plans are to continue to.
Move ahead in those areas.
The real estate side, we spent about $1 billion. This year I would suspect that we would do.
Somewhere close to that or maybe a little bit more next year, but thats a rough estimate.
Hard to tell how many projects, we can get through permitting and.
And whatnot, but I think next year would look.
At least what it looked like this year and hopefully more on the on the truck side.
Okay Fair enough. Thank you for your time and good luck.
Executing through it would certainly.
Certainly unusual times I appreciate your time today.
<unk>.
Our next question will come from Jamie Wilen with Wilen management. Please go ahead.
Hi, Fellas, congrats on a great year of $1 billion in profits as a pretty decent number.
I'll start on self storage could you tell us what the increase in rate was that you experienced during the last fiscal year.
Sure.
I think if you were to average it out over the course of their maybe were up $4 five 5% on a more current number that the.
The move ins.
People that are moving and now the average rate per foot is about 7% higher than it was last year.
Okay.
That seems to be a little bit below the industry is that.
Part of your strategy.
I think it's above the historical rate.
When you quote industry rates you have to go look at discounting it.
I looked at our portfolio of properties here recently.
Their economic occupancy was about 90, but their economic occupancy was 78. So the rate is and what the rate is so low.
Differences all discounting.
And.
We have a standard discount that we have not changes one month's free with the truck rental.
<unk>.
We haven't we're not engaging in extensive discounting.
No.
To my way of thinking the numbers that Jason.
Quoted.
We're higher than we've been able to sustain over any 10 year period.
Would you agree to that Jason I would say that the.
The overall portfolio of four 5% to 5% or 4% to 5% is kind of historical the 7% in current move in rates is higher than normal about three points higher.
Historically used to take you I believe four years to get to that 80% rate.
So the units that you're opening up now is that your same expectation or have they been filling up quicker.
Months.
Maybe left <unk>.
18 months, Great first phillippe.
<unk> is just hot.
Mark has been hot for apparel Jamie.
I can't totally explain it.
I'd like to match later, but I think I think other people with quarters similar number.
They don't share the numbers with me, but.
Visit facilities and such I think.
We're not anywhere near.
Okay. Because you obviously, you opened up $4 5 million square feet of space in the current fiscal year.
Zero percent so it obviously is.
Yes.
And your occupancy rates overall.
<unk> grown tremendously so that obviously.
That year, one is a much quicker pace than you had anticipated.
Way way quicker and it's interesting thing is of course, but that doses and I encourage that creates competition between managers.
No.
We get recognition of those people other people.
It's it's raised people's expectations of themselves are.
General our store managers in general.
Have a higher expectation of themselves and that causes them to do better it's same in sports or anything so.
I'm trying to hang on to that.
Rent up right now, we'll see how that works out, but im trying to hang on to that because of course, it's massively more economic for us.
Correct.
And do you plan on adding four to 5 million square feet annually. As you move forward is that the game plan.
I'd actually like to add a little bit more right now.
If you said, Rob would you quote 91000 rooms.
So he says were up 91 rooms.
The rooms, roughly averaged 10 square foot per room. So.
Oh.
We're renting up faster than we're adding product, which is what youre seeing in the overall occupancy rate increase.
I would like to be adding product at about the rate I'm renting up.
But it just doesn't kind of work out that way because the lead time is so great on that product so I need to.
Be adding enough products that I don't lose the present opportunity, but not so much product or they get caught with the <unk>.
Hangover.
So.
I'm trying to manage that.
<unk>.
Successful doing that.
So because of the number of facilities you have.
<unk>.
And progress.
Would assume youre growing at a faster rate in terms of annual square footage than just about anybody else in the industry.
Well it gets a little confusing.
Our three major competitors life cube, smart extra seats and public so for all have <unk>.
Management programs out there so.
There.
Increasing they're facing to the public.
Important.
Faster than us I think.
Owned square footage, we are increasing faster that's Jason use study of more than I do I would say over the last five years.
We've kept pace with some of the fastest movers in the industry and I would say that maybe a difference is.
Art.
Vast majority of what we're putting on is new product versus acquiring existing product or something that someone else has built and opened.
And started.
And so for US I think one of our best years for adding space I think we've put somewhere around $6 5 million square feet on it in the 12 month period give or take a few hundred thousand.
So I think we do have some more upside as far as being able to put put square footage Sean.
And do you have a 120 properties I believe you said kind of in your land bank, what's the value of that that you have.
Assets that is not yet.
Underdevelopment and self storage.
Jamie It's a great question I don't have that number right in front of me I apologize.
Okay.
Moving over to U box for a second you talked you are very explicit about the number of trucks you have the number of trailers towing devices square feet and self storage, but.
We really haven't discussed.
The number of U box.
Containers, we have out there today versus what we had out there two years ago.
I'm trying to remember the number five adult remember we're up in new boxes.
Like anything thats growing at a pretty good clip.
Every number.
What I say is obsolete about 30 days later.
And we're still seeing.
Above average amount of.
What you called dislocations.
Light trucks, you need to have them for the businesses.
Just having them doesn't.
Guarantee that you're going to.
Do it we're somewhere north.
I don't want to state, where we are because the person wants to know the most is our competitor.
We are steadily increasing where we.
We see no reason, we're not going to be able to continue to increase over the next several months.
We get new boxes from two sources, we build some and we buy some from third parties.
I could shut the third parties off pretty darn quick.
Might take four to five months to show up.
Our internal production, mostly I'm trying to Jack it up because we have increased demand.
But I don't see.
Near term possibility they will have an oversupply.
There are patterns of new box just like there are new haul so people tend to move more people into Texas, then move out of Texas does that make it more people move out of San Francisco they'll move into San Francisco So.
Constantly we're having to get boxes MTS to San Francisco, So they can move to Austin.
Yes.
With too many at Austin, So we.
We're still.
We understand the basic flows were still working on it what's the most economic way to.
Balanced those flows you get the best utilization you cannot work.
I think we're a little I think we're better at that with trucks, but.
My son, Sam who runs U box as he is better at it than the truck people ourselves.
Good healthy.
Competition.
Should be able to leverage things we've learned in the truck business.
Into the U box business.
Sure.
For those to say the other big component is how much.
Few box storage space, we have.
Do you have any idea of the occupancy rate on new box storage adjacent number like that.
No I don't have that.
It is seasonal.
So we end up with a little bit far boxes and storage in the summer than in the winter, but but the new box storage business continues.
<unk> continues to grow that's the.
Good news there so.
Box is both are moving product into storage product and.
Exactly how to report on it.
Isn't you'd think after were about 15 years in this business you think we'd have we know exactly how to report because that motivates of course the people at the front lines.
We changed a bunch of that in the last 18 months and it was for the bedroom helped motivate people better.
But I don't think we.
Here's a good a better quote if I open a big warehouse I got a big warehouse in Sacramento going to open here just opened.
And it's going to impact business because.
My team members will know that if they sell the <unk>.
<unk> move.
That will be able to service it theres other markets and I'll pick.
L a.
We have not enough <unk>.
Box warehouse capacity somite people, there our timber about selling it because they don't want the customer to come back and be hot because we underperformed in having our warehouses critical to your performance because as soon as the <unk>.
Box leaves the customers' premises it needs to go to our premise and that means an inside secure.
Halfway modern storage building. So there is a little bit to that we've added square footage there will continue to add square footage there.
And that is is that as part of what.
Drives overall business.
Fighting desperately to get better space in L. A but.
We're not we're not keeping up I would say the same thing about Seattle.
Although we just brought us a nice warehouse online there within the last month that will cause a bump in our business immediately.
And.
If I can get two or three more nights warehouses in Seattle correctly located in everything.
That will bump our business so.
That's a big market the U box marketers.
Jamie This is J D.
Wanted to jump in real quick the answer to your previous question.
120, or so properties that or you call. It land bank at costs that are on the books for about $360 million.
Okay. Thanks, Jason.
Two.
G box when I look in the 10-K other revenue was $427 million.
This past fiscal year is that all U box.
No its not there is a few other <unk>.
Programs that fall into that but it's certainly becoming.
The majority component of that yes, it is not yet.
As Joe mentioned.
No one else reports their operations publicly the requirement that we would have to report those revenues separately is 10%.
Of gross revenue and it hasnt hit that Mark yet.
Okay. Other revenues was up nearly 50%.
Would you characterize U box revenues as being.
50% or so in the past year.
It's certainly high if not quite 50%.
Okay and lastly on your box how large is your box relative to that other competitor that I don't want to mention by name, but if you could get US there revenue, we will get to you Chris.
Yes.
Okay.
Be fascinated to hear that.
Do you have any idea how many facilities.
Might have relative to how much how many U box facilities you have.
No I don't the U box people, probably do but I don't.
Okay.
Okay.
I think we've got some outnumber on locations at this point.
And lastly in regards to the previous questioner about closing the value gap between the value you've created and what the public market.
Is giving you is as of as a value which is.
An incredible discount to what you're worth.
I would hope over the next you had said by the end of the year and I would hope over the next six months you can really.
Drive the board to have a firm dividend policy to think about buying back stock to think about a number of ways of creating more value for the company, whether it's splitting the stock or changed the name to U haul. There is so many avenues your disposal and and I think it's incumbent upon you to do whats.
Best for all shareholders of which we're family happens to be the largest one but to close that value gap and I hope you can come to some conclusion.
Thank you for your time, guys who've done a great job appreciate it.
Thanks, Jamie.
This will conclude our question and answer session I would now like to turn the conference back over to management for any closing remarks.
Well thanks, everyone for your participation today, we really appreciate it we will look forward to speaking with you. After we report our first quarter results in August . Thank you.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.