Q1 2025 U-Haul Holding Co Earnings Call

August 8, 2024

Please stand by. Your program is about to begin. If you need assistance during your conference today, please press star zero.

And today, please press star zero.

Sebastien Reyes: 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. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing star one on your telephone keypad.

Operator: Please press star zero. 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. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. 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 Sebastian Reyes. Please go ahead.

Speaker Change: 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. Later, you will have the opportunity to ask questions during the question and answer session.

You may register to ask a question at any time by pressing star 1 on your telephone keypad. 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.

Unknown Executive: Please note this call is being recorded. I will be standing by if you should need any assistance.

and today please press star zero.

Sebastien Reyes: It is now my pleasure to turn the conference over to Sebastien Reyes. Please go ahead.

Unknown Executive: 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. Later you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star one on your telephone keypad. Please note this call is being recorded. I will be standing by if you should need any assistance.

Sebastien Reyes: 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.

Unknown Executive: Good morning, and thank you for joining us today.

Unknown Executive: 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 for looking statements within the meeting of the State Harbor provisions, 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, some of which cannot be predicted or quantified. Certain factors could cause actual results to differ materially from those projected.

Sebastien Reyes: Good morning and thank you for joining us today. Welcome to the U-Haul Holding Company first quarter fiscal 2025 investor call.

Sebastien Reyes: Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Therefore, certain factors could cause actual results to differ materially from those projected. For a discussion of the risks and uncertainties that may affect the company's business and future operating results, please refer to the company's public SEC filings and Form 10-Q for the quarter ended June 30, 2024, which is on file with the U.S. Securities and Exchange Commission. I'll now turn the call over to Joe Shoen, Chairman of U-Haul Holding Company.

Sebastien Reyes: 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,

Sebastien Reyes: 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.

Sebastien Reyes: 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.

Unknown Executive: 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 for looking statements within the meeting of the State Harbor provisions, Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

Sebastien Reyes: Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Certain factors could cause actual results to differ materially from those projected.

Unknown Executive: For discussion of the risks and uncertainties that may affect the company's business and future operating results, please refer to the company's public SEC filings and Form 10-Q for the quarter ended June 30, 2024, which is on file with the U.S. Securities and Exchange Commission.

Sebastien Reyes: for discussion of the risks and uncertainties that may affect the company's business.

and future operating results.

Please refer to the company's public SEC filings and Form 10-Q for the quarter ended June 30, 2024, which is on file with the U.S. Securities and Exchange Commission.

Joe Schoen: I'll now turn the call over to Joe Schoen, chairman of U-Haul Holding Company. Good morning, and thanks for taking your time to participate today. The increased cost of new rental trucks is expressing itself in our P&L in the form of a decrease in gain on sale and increased appreciation. We have so far been unable to pass along these increased equipment costs to the consumer. As you all know, automakers have been inflating the cost of internal combustion vehicles to subsidize electric vehicles. These inflated costs are not being supported in the resale market. As we have discussed, it puts you in a pinch on those vehicles we turn after 12 to 24 months, mainly pickups and vans.

Unknown Executive: Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Certain factors could cause actual results to differ materially from those projected. For discussion of the risks and uncertainties that may affect the company's business and future operating results, please refer to the company's public SEC filings and form 10Q for the quarter ended June 30, 2024, which is on file with the U.S. Securities and Exchange Commission.

Joe Shoen: I'll now turn the call over to Joe Shoen, Chairman of U-Haul Holding Company. Good morning and thanks for taking your time to participate today.

Joe Shoen: Good morning, and thanks for taking your time to participate today. The increased cost of new rental trucks is expressing itself in our P&L in the form of a decrease in gain on sale and increased depreciation. We have so far been unable to pass along these increased equipment costs to the consumer. As you all know, automakers have been inflating the cost of internal combustion vehicles to subsidize electric vehicles. These inflated costs are not being supported in the resale market. As we have discussed, it puts you in a pinch.

Joe Shoen: The increased cost of new rental trucks is expressing itself in our P&L in the form of a decrease in gain on sale and increased depreciation.

We have so far been unable to pass along these increased equipment costs to the consumer.

Joe Schoen: I'll now turn the call over to Joe Schoen, Chairman of U-Haul holding company. Good morning and thanks for taking your time to participate today. The increased cost of new rental trucks is expressing itself in our P&L in the form of a decrease in gain on sale and increased appreciation. We have so far been unable to pass along these increased equipment costs to the consumer. As you all know, automakers have been inflating the cost of internal combustion vehicles to subsidize electric vehicles. These inflated costs are not being supported in the resale market. As we have discussed, it puts you on a pinch on those vehicles we turn after 12 to 24 months, mainly pickups and vans.

As you all know, automakers have been inflating the cost of internal combustion vehicles.

Joe Shoen: to subsidize electric vehicles.

These inflated costs are not being supported in the resale market.

Speaker Change: As we have discussed, it puts you on a pinch.

Joe Shoen: On those vehicles, we turn them after 12 to 24 months, mainly pickups and bands. We remain focused on reversing the decline in moving equipment transactions. It is looking like we are finally getting traction over the same period in the prior year. While U-Haul can't get people to move, we can provide them with a better product and service once they are considering moving. The market is very competitive, and the consumer has choices. We continue to see gains in self storage, while many large competitors are not presently doing so. However, self-storage remains a close contest. The U-Haul team will remain customer focused to win additional business. We have continued to add self-storage units at a pace faster than we are renting them out.

Joe Shoen: On those vehicles, we turn after 12 to 24 months, mainly pickups and vans.

Joe Schoen: We remain focused on reversing the decline in moving equipment transactions. It is looking like we are finally getting traction over the same period in the prior year. While U-Haul can't get people to move, we can provide them with a better product and service once they are considering moving. The market is very competitive, and the consumer has choices. We continue to see gains in self-storage, while many large competitors are not presently doing so. However, self-storage remains a close contest. The U-Haul team will remain customer-focused to win additional business. We have continued to add self-storage units at a is faster than we are renting them up.

We remain focused on reversing the decline in moving equipment transactions.

Joe Shoen: It is looking like we are finally getting traction over the same period in the prior year.

Joe Shoen: While U-Haul can't get people to move, we can provide them with a better product and service once they are considering moving.

The market is very competitive and the consumer has choices.

Sebastien Reyes: We continue to see gains in self-storage while many large competitors are not presently doing so.

Sebastien Reyes: However, self-storage remains a close contest.

The U-Haul team will remain customer focused to win additional business.

Sebastien Reyes: We have continued to add self-storage units at a pace...

Joe Schoen: I still believe this is the right course. U-Haul has an outstanding team at the customer-facing level. We will continue to work to be the customer's best choice.

Joe Shoen: I still believe this is the right course. U-Haul has an outstanding team at the customer facing level. We will continue to work to be the customer's best choice. Now, I'll turn the call over to Jason to walk us through the numbers. Thanks, Joe.

Sebastien Reyes: faster than we are renting them up.

Sebastien Reyes: I still believe this is the right course.

Sebastien Reyes: U-Haul has an outstanding team at the customer facing level. We will continue to work to be the customer's best choice.

Joe Schoen: However, self-storage remains a close contest. The U-Haul team will remain customer-focused to win additional business. We have continued to add self-storage units at a is faster than we are renting them up. I still believe this is the right course. U-Haul has an outstanding team at the customer-facing level. We will continue to work to be the customer's best choice.

Jason Berg: Now I'll turn the call over to Jason to walk us through the numbers. Thanks, Jeff. Yesterday, we reported first quarter earnings of $195 million, compared to $257 million for the same quarter last year. That equates to a dollar per non-voting share this quarter and a dollar 31 per non-voting share for the first quarter of last year. Nearly 60% of the decline came from the decrease in gains on the disposal of retired equipment.

Sebastien Reyes: Now I'll turn the call over to Jason to walk us through the numbers. Thanks, Joe.

Jason Berg: Yesterday, we reported first quarter earnings of $195 million compared to $257 million for the same quarter last year. That equates to a dollar per non-voting share this quarter and $1.31 per non-voting share for the first quarter of last year. Nearly 60% of the decline came from the decrease in gains on the disposal of retired equipment. During the remainder of my prepared remarks, all of my comparisons are going to be for the first quarter of fiscal 25 versus the first quarter of fiscal 24.

Jason: Yesterday, we reported first quarter earnings of $195 million compared to $257 million for the same quarter last year. That equates to $1 per non-voting share this quarter and $1.31 per non-voting share for the first quarter of last year.

Speaker Change: Nearly 60% of the decline came from the decrease in gains on the disposal of retired equipment.

Jason Berg: Now I'll turn the call over to Jason to walk us through the numbers. Thanks, Jeff. Yesterday, we reported first quarter earnings, $195 million, compared to $257 million for the same quarter last year. That equates to a dollar per non-voting share this quarter and a dollar 31 per non-voting share for the first quarter of last year. Nearly 60% of the decline came from the decrease in gains on the disposal of retired equipment.

Jason Berg: During the remainder of my prepared remarks, all of my comparisons are going to be for the first quarter of fiscal 25 versus the first quarter of fiscal 24. Equipment rental revenue results: we had a $15 million increase. That's about 1.5%. This is our first year-over-year increase in equipment rental revenue in eight quarters and is 35% higher than the first quarter of fiscal 2020, which was our last quarter before the pandemic. And I mentioned this because it puts our current first quarter results above where our historical trend would have had us absent the positive business side effects of the pandemic.

Sebastien Reyes: during the remainder of my prepared remarks all of my comparisons are going to be for the first quarter of fiscal twenty-five versus the first quarter of fiscal twenty-four

Jason Berg: Equipment Rental Revenue Results We had a $15 million increase, that's about 1.5%. This is our first year over year increase in equipment rental revenue in eight quarters and is 35% higher than the first quarter of fiscal 2020, which was our last quarter before the pandemic. And I mentioned this because it puts our current first quarter results above where our historical trend would have had us, absent the positive business side effects of the pandemic.

Sebastien Reyes: Equipment rental revenue results. We had a 15 million dollar increase. That's about one and a half percent. This is our first year-over-year increase in equipment rental revenue in eight quarters.

Sebastien Reyes: and is thirty-five percent higher than the first quarter of fiscal two thousand and twenty which was our last quarter before the pandemic

Jason Berg: During the remainder of my prepared remarks, all of my comparisons are going to be for the first quarter of fiscal 25 versus the first quarter of fiscal 24. Equipment rental revenue results, we had a $15 million increase. That's about 1.5%. This is our first year-over-year increase in equipment rental revenue in eight quarters and is 35% higher than the first quarter of fiscal 2020, which was our last quarter before the pandemic. And I mentioned this because it puts our current first quarter results above where our historical trend would have had us absent the positive business side effects of the pandemic.

Sebastien Reyes: And I mention this because it puts our current first quarter results above where our historical trend would have had us, absent the positive business side effects of the pandemic.

Jason Berg: Transactions and revenue per transaction in both our in-town and one-way markets improved. The increase in transactions, combined with the progress that we've made in rotating older equipment out of the fleet, resulted in an increase in equipment utilization. July revenue results were close to even with last year's monthly results. We've had a good start here in the first week of August.

Jason Berg: Transactions and revenue per transaction in both our in-town and one-way markets improved. The increase in transactions combined with the progress that we've made in rotating older equipment out of the fleet resulted in an increase in equipment utilization. July revenue results were close to even with last year's monthly result. We've had a good start here in the first week of August. Capital expenditures for new rental equipment were $539 million. That's an $85 million increase. We've increased our fiscal 2025 full-year net cat-backs projection by about $40 million to a billion, $90 million. That's due to the addition of more units that became available from one of our manufacturers.

Sebastien Reyes: Transactions and revenue per transaction in both our in-town and one-way markets improved.

Sebastien Reyes: The increase in transactions, combined with the progress that we've made in rotating older equipment out of the fleet, resulted in an increase in equipment utilization.

Sebastien Reyes: July revenue results were close to even with last year's monthly result. We've had a good start here in the first week of August.

Jason Berg: Capital expenditures for new rental equipment were $539 million, an $85 million increase. We've increased our fiscal 2025 full-year net capex projection by about $40 million to $1,090,000,000. That's due to the addition of more units that became available from one or more manufacturers. On the other side of the equation, proceeds from the sales of retired equipment decreased by $49 million, to a total of $144 million.

Sebastien Reyes: capital expenditures for new rental equipment or five hundred thirty nine million dollars that's an eighty five million dollars increase

Sebastien Reyes: We've increased our fiscal 2025 full-year net capex projection.

Sebastien Reyes: by about $40 million to $1,090,000,000. That's due to the addition of more units that became available from one of our manufacturers.

Jason Berg: On the other side of the equation, proceeds from the sales of retired equipment decreased by $49 million to a total of $144 million. That's a combination of fewer sales of our smaller trucks and vans, along with a lower sales proceeds per unit that we received for each of those trucks.

Sebastien Reyes: On the other side of the equation, proceeds from the sales of retired equipment decreased by $49 million to a total of $144 million. That's a combination of fewer sales of our smaller trucks and vans, along with a lower sales proceeds per unit that we received for each of those trucks.

Jason Berg: That's a combination of fewer sales of our smaller trucks and vans, along with lower sales proceeds per unit that we received for each of those. Switching gears to self storage, we were up $17 million, which is about 8%. Average revenue per occupied foot continued to improve across the entire portfolio, up nearly 3%. And if you carve out the same store portfolio, we were up just over four and a half percent per unit. Our occupied unit count at the end of June was up over 32,000 units compared to the same time last year.

Jason Berg: We've increased our fiscal 2025 full-year net cat-backs projection by about $40 million to a billion, $90 million. That's due to the addition of more units that became available from one of our manufacturers. On the other side of the equation proceeds from the sales of retired equipment decreased by $49 million to a total of $144 million. That's a combination of fewer sales of our smaller trucks and vans along with a lower sales proceeds per unit that we received for each of those trucks.

Jason Berg: Switching gears to self-storage, we were up $17 million, which is about 8 percent. Average revenue per occupied foot continued to improve across the entire portfolio, up nearly 3 percent. If you carve out the same store portfolio, we were up just over 4.5 percent per foot. Our occupied unit count at the end of June was up over 32,000 units compared to the same time last year. But, as Joe alluded to during the same time frame, we added nearly 64,000 new units. This differential then led to our average occupancy across the entire portfolio to decline about 280 basis points to 80 percent.

Sebastien Reyes: Switching gears to self-storage, we were up $17 million, which is about 8%.

Sebastien Reyes: Average revenue per occupied foot continued to improve across the entire portfolio up nearly 3%.

Sebastien Reyes: And if you carve out the same store portfolio, we were up just over four and a half percent per foot.

Sebastien Reyes: Our occupied unit count at the end of June was up over 32,000 units compared to the same time last year.

Jason Berg: But as Joe alluded to, during the same time frame, we added nearly 64,000 new units, and this differential then led to our average occupancy across the entire portfolio declining about 280 basis points to 80%. If you split out the same store portfolio, we saw average occupancy come down by 120 basis points to 93.9%, and since June of last year, we grew our same store portfolio by 59 locations. During the quarter, we invested $402 million in real estate acquisitions along with self-storage and U-Box warehouse development costs.

Jason Berg: Switching gears to self-storage, we were up $17 million, which is about 8 percent. Average revenue per occupied foot continued to improve across the entire portfolio up nearly 3 percent. If you carve out the same store portfolio, we were up just over 4.5 percent per foot. Our occupied unit count at the end of June was up over 32,000 units compared to the same time last year. But as Joe alluded to during the same time frame, we added nearly 64,000 new units.

Sebastien Reyes: But as Joe alluded to, during the same time frame, we added nearly 64,000 new units. This differential then led to our average occupancy across the entire portfolio to decline about 280 basis points to 80%.

Jason Berg: If you split out the same store portfolio, we saw average occupancy come down by 120 basis points to 93.9 percent. and since June of last year we grew our same store portfolio by 59 locations. During the quarter, we invested $402 million in real estate acquisitions along the self-storage and U-Box warehouse development cost. That was an $108 million increase. During the quarter, we added 17 new storage locations, along with expansion projects at several locations. The total square footage increase was just under 1.7 million new net-runable square feet. We currently have about 7,700,000 new square feet being developed across 158 active projects, as another 9.2 million square feet of development pending behind that.

Joe Shoen: If you split out the same store portfolio, we saw average occupancy come down by 120 basis points to 93.9 percent.

Speaker Change: And since June of last year, we grew our same store portfolio by 59 locations.

Speaker Change: During the quarter, we invested $402 million in real estate acquisitions along with self-storage and U-box warehouse development costs.

Jason Berg: This differential then led to our average occupancy across the entire portfolio to decline about 280 basis points to 80 percent. If you split out the same store portfolio, we saw average occupancy come down by 120 basis points to 93.9 percent, and since June of last year we grew our same store portfolio by 59 locations. During the quarter we invested $402 million in real estate acquisitions along the self-storage and U-Box warehouse development cost.

Jason Berg: That was an $108 million increase. During the quarter, we added 17 new storage locations along with expansion projects at several locations. The total square footage increase was just under 1.7 million new net runnable square feet. We currently have about 7,700,000 new square feet being developed across 158 active projects, with another 9.2 million square feet of development pending behind that.

Sebastien Reyes: That was an $108 million increase.

Sebastien Reyes: During the quarter, we added 17 new storage locations along with expansion projects at several locations.

Sebastien Reyes: The total square footage increase was just under 1.7 million new net runnable square feet.

Sebastien Reyes: We currently have about 7,700,000 new square feet being developed across 158 active projects and then another 9.2 million square feet of development pending behind that.

Jason Berg: That was an $108 million increase. During the quarter we added 17 new storage locations along with expansion projects at several locations. The total square footage increase was just under 1.7 million new net-runable square feet. We currently have about 7,700,000 new square feet being developed across 158 active projects as another 9.2 million square feet of development pending behind that.

Jason Berg: Our U-Box revenue results are included in Other revenue in our 10-Q filings. This line item increased $9 million, of which U-Box was a major contributor. Earnings before interest, taxes, and depreciation that are moving in storage segments adjusted to remove interest income from the prior year. I'll touch on that a little bit more here in a second. Increased by $16.5 million. A few comments on operating expenses at the moving in storage segment: they increased $21.5 million, leaving our operating margin before depreciation and lease expense flat with the first quarter of $24. On a positive note, we saw fleet repair and maintenance decreased a little over $20 million.

Jason Berg: Our Ubox revenue results are included in other revenue in our 10-Q filings. This line item increased $9 million, of which Ubox was a major contributor. Earnings before interest, taxes, and depreciation that are moving in the storage segment, adjusted to remove interest income from the prior year, and I'll touch on that a little bit more here in a second, increased by $16.5 million. A few comments on operating expenses at the moving in storage segment: they increased $21.5 million, leaving our operating margin before depreciation and lease expense flat with the first quarter of 2015.

Sebastien Reyes: Our Ubox revenue results are included in other revenue in our 10-Q filings. This line item increased $9 million, of which Ubox was a major contributor.

Sebastien Reyes: Earnings before interest taxes and depreciation that are moving in storage segment adjusted to remove interest income from what the prior year I'll touch on that a little bit more here in a second increased by 16 and a half million dollars

Jason Berg: Our U-Box revenue results are included in other revenue in our 10Q filings. This line item increased $9 million of which U-Box was a major contributor. Earnings before interest taxes and depreciation that are moving in storage segments adjusted to remove interest income from the prior year. I'll touch on that a little bit more here in a second. Increased by $16.5 million. A few comments on operating expenses at the moving in storage segment, they increased $21.5 million leaving our operating margin before depreciation and lease expense flat with the first quarter of $24.

Sebastien Reyes: A few comments on operating expenses at the moving and storage segment. They increased $21.5 million, leaving our operating margin before depreciation and lease expense flat with the first quarter of 24.

Jason Berg: On a positive note, we saw fleet repair and maintenance decrease by a little over $20 million, a pace that we're unlikely to maintain throughout the rest of this year. On the other side, personnel costs were up a little over $11 million, liability costs associated with the fleet were up $13 million, and then property taxes and building maintenance were up a combined $10 million. We continue to place a premium on having access to cash at the end of June that is moving in the storage segment.

Sebastien Reyes: On a positive note, we saw fleet repair and maintenance decreased a little over $20 million, a pace that we're unlikely to maintain throughout the rest of this year.

Jason Berg: A pace that we're unlikely to maintain throughout the rest of this year. On the other side, personnel costs were up a little over $11 million. Liability costs associated with the fleet were up $13 million, and then property taxes and building maintenance were up a combined $10 million.

Sebastien Reyes: On the other side, personnel costs were up a little over $11 million, liability costs associated with the fleet were up $13 million, and then property taxes and building maintenance were up a combined $10 million.

Jason Berg: We continue to place a premium on having access to cash. At the end of June, that are moving in storage segment are cash, along with availability. Unused availability from existing facilities totaled $1,567 million. We saw interest during the quarter increase $6.6 million, while interest income on our cash and short-term investments decreased just under $9 million due to less cash being held on the balance sheet. For this year, there's going to be a bit of a presentation difference on the moving storage interest income. We're going to take a little bit of extra effort to make the appropriate comparison.

Jason Berg: Our cash, along with availability, and unused availability from existing facilities, totaled $1,567,000,000. We saw interest. During the quarter, revenues increased $6.6 million, while interest income on our cash and short-term investments decreased just under $9 million due to less cash being held on the balance sheet. For For this year, there's going to be a bit of a presentation difference in the moving and storage interest income. It's going to take a little bit of extra effort to make the appropriate comparison.

Sebastien Reyes: We continue to place a premium on having access to cash. At the end of June , at our moving in storage segment, our cash, along with availability, unused availability from existing facilities, totaled $1,567,000,000.

Jason Berg: On a positive note, we saw fleet repair and maintenance decreased a little over $20 million. A pace that we're unlikely to maintain throughout the rest of this year. On the other side, personnel costs were up a little over $11 million. Liability costs associated with the fleet were up 13 million and then property taxes and building maintenance were up a combined $10 million.

Sebastien Reyes: We saw interest during the quarter increase $6.6 million, while interest income on our cash and short-term investments decreased just under $9 million due to less cash being held on the balance sheet.

Jason Berg: We continue to place a premium on having access to cash. At the end of June that are moving in storage segment are cash along with availability. Unused availability from existing facilities totaled $1,567 million. We saw interest during the quarter increase $6.6 million while interest income on our cash and short-term investments decreased just under $9 million due to less cash being held on the balance sheet.

Speaker Change: For this year, there's going to be a bit of a presentation difference on the moving and storage interest income. It's going to take a little bit of extra effort to make the appropriate comparison. If you have any questions about that, please feel free to reach out to Sebastian or myself to walk you through it.

Jason Berg: If you have any questions about that, please feel free to reach out to Sebastian or myself to walk you through it.

Jason Berg: If you have any questions about that, please feel free to reach out to Sebastian or myself to walk you through it. On our investor relations website, investors.uhaul.com, we posted some supplemental materials this quarter that are in addition to our press release in our 10-Q filing. You can click on these on the homepage and also in the lower right-hand corner of that page. With that, I would like to hand the call back to Angela, our operator, to begin the question and answer portion of the call. At

Jason Berg: On our investor relations website, investors.uhl.com, we posted some supplemental materials this quarter that are in addition to our press release on our 10-Q filing. You can click on these on the homepage and also on the lower right-hand corner of that page.

Speaker Change: on our investor relations website investors dot you all dot com be posted some supplemental materials this quarter that are in addition to our press release on our ten -q filing you can click on these on the home page alls on the lower right-hand corner of that page

Jason Berg: For this year, there's going to be a bit of a presentation difference on the moving storage interest income. We're going to take a little bit of extra effort to make the appropriate comparison. If you have any questions about that, please feel free to reach out to Sebastian or myself to walk you through it.

Unknown Executive: With that, I'd like to hand the call back to Angela, our operator, to begin the question-and-answer portion of the call. At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question. We will pause for a moment to allow questions to you.

Sebastien Reyes: With that, I would like to hand the call back to Angela, our operator, to begin the question and answer portion of the call.

Operator: At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. Once again, that is star one to ask a question. We will pause for a moment to allow questions to queue. Now, let's take our first question from Keegan Carl with Wolf Research. Please go ahead.

Angela: At this time, if you would like to ask a question, please press star 1 on your telephone keypad.

Jason Berg: On our investor relations website, investors.uhl.com, we posted some supplemental materials this quarter that are in addition to our press release on our 10Q filing. You can click on these on the homepage and also on the lower right hand corner of that page.

Angela: You may remove yourself from the queue at any time by pressing star 2.

Angela: Once again, that is star 1 to ask a question. We will pause for a moment to allow questions to queue.

Unknown Executive: With that, I'd like to hand the call back to Angela, our operator, to begin the question and answer portion of the call. At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question. We will pause for a moment to allow questions to you.

Keegan Carl: Let's take our first question from Keegan Carl with Wolf Research. Please go ahead.

Speaker Change: We'll take our first question from Keegan Carl with Wolf Research. Please go ahead.

Joe Schoen: Yeah, thanks for the time, guys. Maybe to kick things off, Joe mentioned on the release that it feels like the customer is winning the eventual race. I guess I'm just curious: is this comment more broadly just surrounding pricing power and potential erosion around that, or is there something else there that was meant by that comment?

Keegan Carl: Yeah, thanks for the time guys. Um, maybe to kick things off, Joe mentioned in the release that it feels like the customers are winning the eventual race. I guess I'm just curious, is this comment more broadly just surrounding pricing power and potential erosion around that? Or is there something else here that was meant by that comment?

Keegan Carl: Thanks for the time guys. Maybe to kick things off, Joe mentioned on the release that it feels like the customer is winning the eventual race. I guess I'm just curious, is this comment more broadly just surrounding pricing power and potential erosion around that, or is there something else there that was meant by that comment?

Joe Schoen: No, the customer is, of course, who's going to win. I know that the review this very much is a consumer product. Some other of our other people in the marketplace view, this is a real estate product. We view it as a consumer product, and we can very much that if someone can win the support of the consumer, that they will do that by pleasing a consumer, and that's our intent. We believe that will give us some modest amount of greater ability to weather some hard times. It depends on who you talk to, but it's a bunch of people who think it's hard times in the storage business.

Joe Shoen: The customer is, of course, who's going to win. I know that we view this very much as a consumer product. People in the marketplace view this as a, I would say, a real estate product; we view it as a consumer product. And we think very much that if someone can win the support of the consumer, they will do that by pleasing the consumer, and that's our intent, and we believe that will give us, some modest amount of both, a greater ability to weather.

Speaker Change: No, I.

Keegan Carl: Let's take our first question from Keegan Carl with Wolf Research. Please go ahead. Yeah, thanks for the time, guys. Maybe to kick things off, Joe mentioned on the release that it feels like the customer is winning the eventual race. I guess I'm just curious, is this comment more broadly just surrounding pricing power and potential erosion around that, or is there something else there that was meant by that comment? No, the customer is of course who's going to win.

Speaker Change: The customer is, of course, who's going to win. I know that we view this very much as a consumer product.

Speaker Change: Other people in the marketplace view this as a

Speaker Change: I'll tell you, real estate.

Angela: Products, we view it as a consumer product and we think very much that.

Angela: If someone can win the support of the consumer,

Angela: They will do that by pleasing the consumer and that's our intent and we believe that will give us

Keegan Carl: I know that the review this very much is a consumer product. Some other of our other people in the marketplace view, this is a real estate product. We view it as a consumer product and we can very much that if someone can win the support of the consumer, that they will do that by pleasing a consumer and that's our intent. We believe that will give us some modest amount of greater ability to weather some hard times.

Angela: Some modest amount of both.

Angela: greater ability to weather.

Joe Shoen: Some hard times. It depends on who you talk to, but a bunch of people think it's hard times in the storage business. I'm not totally of that mind, but it's much more difficult to get new customers than it was two or three years ago.

Speaker Change: Hard times. It depends on who you talk to, but a bunch of people think it's hard times in the storage business. I'm not totally of that mind, but it's much more...

Joe Schoen: I'm not totally of that mind, but it's much more difficult to get new customers than it was two or three years ago.

Jason Berg: Keegan, this is Jason. If I could also just add to that, I mentioned the revenue per occupied foot on storage is still improving, and on the fleet, we did still see some increased revenue per mile, so we haven't yet seen any sort of decrease in pricing power.

Angela: difficult to get new customers than it was two or three years ago.

Jason Berg: Keegan, this is Jason. I could also just add to that. I mentioned a revenue-procupied fund on storage is still improving, and on the fleet, we did still see some increased revenue per mile, so that we haven't yet seen any sort of decrease in pricing power there. That's really helpful.

Angela: Keegan, this is Jason. If I could also just add to that the

Keegan: I mentioned the revenue per occupied foot on storage is still improving, and on the fleet we did still see some increased revenue per mile, so we haven't yet seen any sort of a decrease in pricing power there.

Keegan Carl: It depends on who you talk to, but it's a bunch of people think it's hard times in the storage business. I'm not totally of that mind, but it's much more difficult to get new customers than it was two or three years ago.

Jason Berg: Got it. That's really helpful. I guess one for you, Jason, I know you mentioned a little bit about July and August performance, but I guess, big picture, I'm trying to get a better feel for whether or not you are starting to see any sequential acceleration, maybe from June to July and July and August across your various business segments?

Keegan Carl: I guess one for you, Jason. I know you mentioned a little bit about July and August performance, but I guess big picture I'm trying to get a better feel for. Are you starting to see any sequential acceleration, maybe from June to July and then July and August, across your various business segments?

Keegan: Got it, that's really helpful. I guess one for you, Jason, I know you mentioned a little bit about July and August performance, but I guess big picture I'm trying to get a better feel for are you starting to see any sequential acceleration maybe from June to July and then July and August across your various business segments?

Jason Berg: Keegan, this is Jason. I could also just add to that. I mentioned a revenue-procupied fund on storage is still improving and on the fleet, we did still see some increased revenue per mile so that we haven't yet seen any sort of decrease in pricing power there.

Jason Berg: I would say that storage has been a fairly steady performer. My expectation going into the year was that we would start to see revenue per-occupied flip kind of trail off; that's remained pre-resilient.

Jason Berg: Storage has been a fairly steady performer.,,,,,,,,,,,,,,,, Victory on that front.

Jason: I would say that.

Jason: Storage has been fairly steady performer. My expectation going into the year was that we would start to see revenue preoccupied foot kind of trail off that that's remained pretty resilient. On the equipment rental business, I'm not ready to declare some sort of

Jason Berg: That's really helpful. I guess one for you, Jason. I know you mentioned a little bit about July and August performance, but I guess big picture I'm trying to get a better feel for. Are you starting to see any sequential acceleration maybe from June to July and then July and August across your various business segments? I would say that storage has been fairly steady performer. My expectation going into the year was that we would start to see revenue per-occupied flip kind of trail off that's remained pre-resilient.

Jason Berg: On the equipment rental business, I'm not ready to declare some sort of victory on that front. It's been a little bit in fits and spurts so far this year. Fortunately, we've had more positive than we've had negative, but we built up a little momentum going into July, and then July flattened out, which was a little bit disappointing. Now, the first week of August, it seems to be picking up. I wouldn't say that all the momentum is there yet.

Jason Berg: It's been a little bit in fits and spurts so far this year, but fortunately, we've had more positive than we've had negative. But we built up a little momentum going into July, and then July flattened out, which was a little bit disappointing. And now, in the first week of August, it seems to be picking up, so I wouldn't say that all the momentum is there yet.

Speaker Change: It's been a little bit in fits and spurts so far this year. Fortunately, we've had more positive than we've had negative. But we built up a little momentum going into July , and then July flattened out, which was a little bit disappointing. And now the first week of August , it seems to be picking up.

Speaker Change: certainly i wouldnt would't say that it all the momentum this area

Jason Berg: On the equipment rental business, I'm not ready to declare some sort of victory on that front. It's been a little bit in fits and spurts so far this year. Fortunately, we've had more positive than we've had negative, but we built up a little momentum going into July and then July flattened out, which was a little bit disappointing. Now, the first week of August, it seems to be picking up. I wouldn't say that all the momentum is there yet.

Joe Shoen: Got it. I guess, just big picture, it feels like we've kind of worked through the peak housing season, and it wasn't what people were necessarily anticipating. So I guess I'm just wondering about the moving business. Did anything stand out regarding the volume or cadence of in town versus one way moves?

Keegan Carl: I guess this big picture feels like we've kind of worked through the peak housing season, and it wasn't what people are necessarily anticipating.

Speaker Change: Got it. I guess just big picture, it feels like we've kind of worked through the peak housing season and it wasn't what people are necessarily anticipating. So I guess I'm just wondering on the moving business, did anything stand out regarding the volume or cadence of in-town versus one-way moves?

Keegan Carl: I guess we're just wondering on the moving business that anything stand out regarding the volume or cadence of in-pound versus one-way moves. My experience is that the ratio of them is determined somewhat by the consumer's optimism. And we saw a little bit of growth in the one way, which is a little bit more optimistic consumer.

Joe Shoen: This is Joe. Well, we saw increases in both. My experience is that the ratio of them is determined somewhat by the consumer's optimism. And we saw a little bit of growth in one way, which is a little bit more optimistic. Is that a trend? I wish I knew the answer. We're definitely digging deep and having to, you know, go to every corner of the market to try to find business. But, of course, that's what we're supposed to do anyway.

Speaker Change: This is Joe. Well, we saw increases in both.

Speaker Change: My experience is that

Speaker Change: The ratio of them is determined somewhat by the consumer's optimism.

Joe Schoen: I guess this big picture feels like we've kind of worked through the peak housing season and it wasn't what people are necessarily anticipating. I guess we're just wondering on the moving business that anything stand out regarding the volume or cadence of in-pound versus one-way moves. My experience is that the ratio of them is determined somewhat by the consumer's optimism. And we saw a little bit of growth in the one way, which is a little bit more optimistic consumer.

Speaker Change: And we saw a little bit of growth in the one way, which is a little bit more optimistic consumer. Now,

Joe Schoen: Now, is that a trend that I wish I knew they answered to that? We're definitely digging deep and having to, you know, go to every corner of the market to try to find business, but of course that's what we're supposed to do anyway.

Speaker Change: Is that a trend? I wish I knew the answer to that.

Speaker Change: We're definitely.

Speaker Change: digging deep and having to, you know, go to every corner of the market to try to find business. But of course, that's what we're supposed to do anyway.

Keegan Carl: I guess just shifting gears to storage, typically the quarter from April to June is the strong quarter for storage. Obviously, the housing markets continue to have an impact.

Keegan Carl: Got it. I guess I'm just shifting gears to storage. Typically, the quarter from April to June is a strong quarter for storage. However, obviously, the housing markets continue to have an impact. I guess what I'm just curious about street rates, given that that's what the new customer has been getting, you know. What happened in the quarter for you guys? Have you been adjusting it at all, you know, based on what the competition's doing? And, and are you seeing any positive trends versus last year in the same period?

Speaker Change: that

Speaker Change: I guess just shifting gears to storage. Typically, the quarter from April to June is a strong quarter for storage. Obviously, the housing markets continue to have an impact.

Keegan Carl: I guess what I'm just curious about is maybe on street rates, given that's what the new customer has been getting. You know, what happened in the quarter for you guys? Have you been adjusting it at all, you know, based on what the competition is doing? And are you seeing any positive trends versus last year in the same period? I'll start off by just speaking to the actual numbers. We're still running a positive variance between, well, kind of on both of the statistics that are part of that question. Asking rents this year versus last year are up for us, and the spread of what the incoming rate is versus the customer outgoing is also still positive for us.

Speaker Change: I guess what I'm just curious is maybe on street rates, given that's what the new customer's been getting, you know, what happened in the quarter for you guys? Have you been adjusting it at all, you know, based on what the competition's doing? And are you seeing any positive trends versus last year in the same period?

Jason Berg: I'll start off by just speaking to the actual numbers. We're still running a positive variance between, well, kind of on both of the statistics that are part of that question, asking rents. This year versus last year, revenues are up for us, and the spread of what the incoming rate is versus the customer outgoing rate is also still positive for us. So I haven't seen those running on average for us for really the last year or so, kind of plus two plus 3% in that range.

Joe Schoen: I guess just shifting gears to storage, typically the quarter from April to June is the strong quarter for storage, obviously the housing markets continue to have an impact. I guess what I'm just curious is maybe on street rates, given that's what the new customer has been getting, you know, what happened in the quarter for you guys, have you been adjusting it at all, you know, based on what the competition is doing, and are you seeing any positive trends versus last year in the same period?

Speaker Change: I'll start off by just speaking to the actual numbers. We're still running a positive variance between, well on kind of on both of the statistics that are part of that question, asking rents

Speaker Change: This year versus last year are up for us.

Speaker Change: and the spread of what the incoming rate is versus the customer outgoing is also still positive for us.

Jason Berg: So I haven't seen those have been running on average for us for really the last year, so kind of plus two, plus three percent in that range.

Joe Schoen: I'll start off by just speaking to the actual numbers. We're still running a positive variance between, well, kind of on both of the statistics that are part of that question, asking rents this year versus last year are up for us, and the spread of what the incoming rate is versus the customer outgoing is also still positive for us. So I haven't seen those have been running on average for us for really the last year, so kind of plus two plus three percent in that range.

Speaker Change: So, I haven't seen, those have been running on average for us for really the last year or so, kind of plus two, plus three percent in that range.

Joe Shoen: This is Joe. I would add that... In my judgment, what's been happening is we're catering to customers to justify our rates, and our competitors are not. Again, this goes back, I think, to a fundamental view of the business. I view this as a consumer product. If I can figure out what they want, there's still a reservoir of additional customers who are willing to pay. Fair Price. There's been a lot of discounting in the industry that's way below cost to do it. I don't know if Jason wants to weigh in on that, but they've been pricing their services way, way below the cost of doing business. And, of course, that usually doesn't work out over the long term.

Joe Schoen: So this is Joe. I would add that what's in my judgments, what's been happening is we're catering to the customers to justify our rates, and our competitors are not.

Speaker Change: This is Joe, I would add that.

Speaker Change: In my judgment, what's been happening is that we're catering.

Speaker Change: to the customers to justify our rates.

Joe Schoen: Again, this goes back, I think, to a fundamental view of the business. I view this as a consumer product, and if I can figure out what they want, there's still a reservoir of additional customers who are willing to pay a fair price. There's been a lot of discounting in the industry that's way below cost to do a business. I don't know if Jason wants to weigh in on that, but they've been pricing way, way below the cost to do a business, and of course, that usually doesn't work out over the long time.

Speaker Change: and our competitors are not.

Speaker Change: Again, this goes back, I think, to a fundamental view of the business. I view this as a consumer product.

Speaker Change: and

Speaker Change: If I can figure out what they want, there's still a...

Speaker Change: A Reservoir of Additional Customers Who Are Willing to Pay a Fair Price.

Joe Schoen: So this is Joe, I would add that what's in my judgments, what's been happening is we're catering to the customers to justify our rates and our competitors are not. Again, this goes back, I think, to a fundamental view of the business. I view this as a consumer product, and if I can figure out what they want, there's still a reservoir of additional customers who are willing to pay a fair price. There's been a lot of discounting in the industry that's way below cost to do a business. I don't know if Jason wants to weigh in on that, but they've been pricing way, way below the cost to do a business, and of course that usually doesn't work out over the long time.

Speaker Change: Discounting in the industry

Speaker Change: that's way below cost to do our business

Speaker Change: You know, I don't know if Jason wants to weigh in on that, but they've been pricing way, way below the cost of doing business, and of course, that usually doesn't work out over a long time.

Keegan Carl: And then last one for me, obviously, there's a lot of concerns around the broader consumer, particularly in storage.

Joe Shoen: And then last one for me, obviously, there's a lot of concerns around the broader consumer, particularly in storage. I guess I'm just curious, one, are you seeing any change in your average length of stay? Two, how are customers reacting to the existing customer rate increase you're sending out? And then, just generally, are you seeing the signs of softness in the storage customer that some of your storage competitors have called out?

Speaker Change: And then last one for me, obviously there's a lot of concerns around the broader consumer, particularly in storage. I guess I'm just curious, one, are you seeing any change in your average length of stay?

Joe Schoen: I guess I'm just curious, one, are you seeing any change in your average length of stay to our customers reacting to the existing customer rate increase you're sending out, and then just generally, are you seeing the signs of softness and the storage customer that some of your storage competitors have called out? Well, there's been softness for two years, just about certainly 18 months, and we have our way of responding to that. Our competitors have their way, and our way has been to try to increase customer service, so the customer can justify spending their hard-earned dollars at the U-Haul facility.

Speaker Change: To how are customers reacting to the existing customer rate increase you're sending out, and then just generally, are you seeing the signs of softness in the storage customer that some of your storage competitors have called out?

Joe Shoen: Well, there's been softness for two years, just about, certainly 18 months. We have our way of responding to that; our competitors have their way, and our way has been to try to increase customer service, so the customer can justify spending their hard-earned dollars at the U-Haul facility. We haven't been doing. Holdings of additional discounting are, didn't fees any of this sort of thing.

Speaker Change: Well, there's been softness for two years, just about, certainly 18 months, and

Joe Schoen: And then last one for me, obviously, there's a lot of concerns around the broader consumer, particularly in storage. I guess I'm just curious, one, are you seeing any change in your average length of stay to our customers reacting to the existing customer rate increase you're sending out, and then just generally, are you seeing the signs of softness and the storage customer that some of your storage competitors have called out? Well, there's been softness for two years, just about certainly 18 months, and we have our way of responding to that.

Speaker Change: We have our way of responding to that and our competitors have their way.

Speaker Change: Our way has been to try to increase customer service.

Speaker Change: So the customer can justify spending their hard-earned dollars.

Joe Schoen: We haven't been doing a whole bunch of additional discounting or hidden fees, any of this sort of thing. And I think that long-term that's going to benefit us, but the jury's still out on that.

Speaker Change: at the U-Haul facility.

Speaker Change: we haven't been doing.

Speaker Change: a whole bunch of additional discounting or

Jason Berg: And I think that, long term, that's going to benefit us. But you know, the jury's still out on that. We just have a fundamentally different way of looking at the

Speaker Change: Hidden fees any of this sort of thing and I think that

Joe Schoen: Our competitors have their way, and our way has been to try to increase customer service, so the customer can justify spending their hard earned dollars at the U-Haul facility. We haven't been doing a whole bunch of additional discounting or hidden fees, any of this sort of thing. And I think that long-term that's going to benefit us, but the jury's still out on that. We just have a fundamental different way of looking at the customer.

Speaker Change: long-term that's going to benefit us.

Joe Schoen: We just have a fundamental different way of looking at the customer.

Speaker Change: but you know the jury's still out on that we just have a fundamental different way of looking at the customer.

Jason Berg: And just for Jason, just any commentary on the length of stay, are you seeing any difference in friends there? Sure. I looked at this for this last quarter; we saw maybe a little bit of a 1% pickup in greater than two years, a couple point increase in the 1-3 month range, and most of that came out of kind of the 9 to 12, or I'm sorry, like 1 to 2-year range. So a little bit movement to the outside, but again, we're talking small percentage points.

Jason Berg: And just for Jason, any commentary on the length of stay, are you seeing any difference in trends there? Sure.

Speaker Change: And just for Jason, just any commentary on the length of stay, are you seeing any difference in trends there?

Jason Berg: Sure, we've, I looked at this for this last quarter, we saw maybe a little bit of a like a 1% pickup in greater than two years, a couple point increase in the one to three month range and most of that came out of , , , , , , , , , , , , , , Great, super helpful.

Jason: Sure, I looked at this for this last quarter, we saw maybe a little bit of a 1% tick up in greater than 2 years, a couple point increase in the 1-3 month range, and most of that came out of

Speaker Change: I'm sorry, like one to two year range. So a little bit movement to the outside, but again, we're talking small percentage points. The other push point that you might look at in the strength of the consumer is what you would call our delinquency rate.

Jason Berg: And just for Jason, just any commentary on the length of stay, are you seeing any difference in friends there? Sure. I looked at this for this last quarter, we saw maybe a little bit of a 1% pickup in greater than two years, a couple point increase in the 1-3 month range, and most of that came out of kind of the 9 to 12, or I'm sorry, like 1 to 2-year range. So a little bit movement to the outside, but again, we're talking small percentage points.

Keegan Carl: The other poor point that you might look at in the strength of the consumer is what you would call our delinquency rate, and that was up maybe 20 basis points compared to the same time last year, but still within kind of the range that we would deem acceptable. Great. Super helpful.

Speaker Change: And that was up maybe 20 basis points compared to the same time last year, but still within kind of the range that we would deem acceptable.

Keegan Carl: Great, super helpful. Thanks for the time, guys. You're welcome.

Unknown Executive: Thanks for the time, guys.

You're welcome.

Speaker Change: super hopeful thanks that time guess welcome

Stephen Rolston: Our next question comes from Stephen Rolston with SACS.

Steven Ralston: Our next question comes from Steven Ralston with SACS. Please go ahead.

Unknown Executive: Please go ahead.

Speaker Change: Our next question comes from Steven Ralston with SACS. Please go ahead.

Jason Berg: The other poor point that you might look at in the strength of the consumer is what you would call our delinquency rate, and that was up maybe 20 basis points compared to the same time last year, but still within kind of the range that we would deem acceptable.

Stephen Rolston: Good morning. I'm going to start with, it might sound like a gratuitous comment, but that's the person that comes to mind. In the last conference, Koso mentioned that he expected the top line to improve modestly through the calendar of 2024, and I was skeptical, but so far it's coming to fruition. As you mentioned, the depreciation effect is coming into play with these strong capital X capex programs. This non-cantic expense is basically disguising U-Haul's earnings power.

Steven Ralston: Good morning. I'm going to start with, and this might sound like a gratuitous comment, but that's the first thing that comes to mind.

Steven Ralston: good morning

Speaker Change: I'm going to start with.

Speaker Change: And it might sound like a gratuitous comment, but that's the first thing that comes to mind.

Speaker Change: In the last conference call, Joe mentioned that he expected the top line to improve modestly through the calendar of

Unknown Executive: Great. Super helpful.

Unknown Executive: Thanks for the time, guys. You're welcome.

Speaker Change: 2024. And I was skeptical, but so far it's coming to fruition.

Stephen Ralston: Our next question comes from Stephen Rolston with SACS. Please go ahead. Good morning. I'm going to start with, it might sound like a gratuitous comment, but that's the person that comes to mind. In the last conference, Koso mentioned that he expected the top line to improve modestly through the calendar of 2024, and I was skeptical, but so far it's coming to fruition. As you mentioned, the depreciation effect is coming into play with these strong capital X capex programs.

Steven Ralston: In the last conference call, Joe mentioned that he expected the top line to improve modestly through the calendar of 2024. And I was skeptical, but so far, it's coming to fruition. As you mentioned, the depreciation effect is coming into play with the Strong Capital CapEx program. This non-cash expense is basically disguising U-Haul's earnings power. I just happened to rent a van this week, and I was impressed. It was a relatively new van, under 20,000 miles. And it gave me a thought that, Epics Timeline.

Speaker Change: As you mentioned, the depreciation effect is coming into play with the strong CapEx program.

Speaker Change: This non-cash expense is basically disguising U-Haul's earnings power.

Stephen Rolston: I just happened to rent a van this week, and I was impressed it was a relatively new van under 20,000 miles, and it gave me a thought that capex timeline.

Speaker Change: I just happened to rent a van this week and I was impressed it was a relatively new van under 20,000 miles.

Stephen Ralston: This non-cantic expense is basically disguising U-Haul's earnings power. I just happened to rent a van this week, and I was impressed it was a relatively new van under 20,000 miles, and it gave me a thought that capex time line. I'm sorry, Stephen. We lost you for a second. You kind of dropped out when I said it gave you a thought. Yes, the gave me a thought that the thing about the capex time line that it might have been easier to buy smaller vehicles like vans as opposed to trucks and larger trucks for the self-moving rental market. If that would affect depreciation in that if you were buying more expensive larger trucks at the tail end of the capex time line, we might see the depreciation even increase more.

Speaker Change: and it gave me a thought that

Steven Ralston: I'm sorry, Steven. We lost you for a second there. You kind of dropped out when I said it gave you thought. Yes, they gave me thought.

Stephen Rolston: I'm sorry, Stephen. We lost you for a second. You kind of dropped out when I said it gave you a thought. Yes, the gave me a thought that the thing about the capex time line that it might have been easier to buy smaller vehicles like vans as opposed to trucks and larger trucks for the self-moving rental market. If that would affect depreciation in that if you were buying more expensive larger trucks at the tail end of the capex timeline, we might see the depreciation even increase more.

Speaker Change: EPICS, Time Line.

Speaker Change: I'm sorry Steven, we lost you for a second there. You kind of dropped out when I said it gave you a thought.

Steven Ralston: Yes, it gave me a thought that the I'm thinking about the CapEx timeline, that it might have been easier to buy smaller vehicles like vans as opposed to trucks and larger trucks for the self-moving rental market, and have those, affect depreciation, in that if you are buying more expensive, larger trucks at the tail end of the CapEx timeline, we might see depreciation even increase more. Could you speak to that?

Steven Ralston: Yes, it gave me a thought that the

Speaker Change: I'm thinking about the CapEx timeline, that it might have been easier to buy smaller vehicles like vans as opposed to trucks and larger trucks for the self-moving rental market.

Speaker Change: have those, if that would affect...

Speaker Change: depreciation, in that if you are buying more expensive, larger trucks at the tail end of the CapEx timeline, we might see depreciation even increase more. Could you speak to that?

Jason Berg: Steven, this is Jason. I'll start.

Jason Berg: Stephen, I'll start. It's not just the larger trucks that are costing more. It's also the trucks' disposal of equipment, or the insert that's part of depreciation; the majority of that is those. It's the cargo vans and the pickups, and that's the area where we're seen. Sales proceeds year-to-year decrease, and then now we're starting to begin to sell the units that we've been purchasing in the last 12, 18 months that were costing us more, which is further shrinking that. And then, with that realization in place, we've then, on new units that have been purchased, been increasing the depreciation on that too.

Speaker Change: so

Speaker Change: Steven, this is Jason. I'll start. It's not just the larger trucks that are costing more, it's also the trucks that you're seeing are also costing more.

Jason Berg: It's not just the larger trucks that are costing more; it's also the trucks that you're seeing are costing more. And the vast majority of our line item gain on disposal of equipment, or the insert, that's part of depreciation, is the majority of that is those cargo vans and the pickups. And that's the area where we're seeing sales proceeds year-over-year decrease, and now we're starting to begin to sell the units that we've been purchasing in the last 12 to 18 months that were costing us more, which is further shrinking that.

Speaker Change: and the vast majority of our

Speaker Change: The line item gain on disposal of equipment or the insert that's part of depreciation is the majority of that is those it's the cargo vans and the pickups and that's the area where we're seeing

Joe Schoen: Stephen, I'll start. It's not just the larger trucks that are costing more. It's also the trucks disposal of equipment, or the insert that's part of depreciation, is the majority of that is those. It's the cargo vans and the pickups and that's the area where we're seen. Sales proceeds year-to-year decrease, and then now we're starting to begin to sell the units that we've been purchasing in the last 12, 18 months that were costing us more, which is further shrinking that.

Speaker Change: Sales proceeds year-over-year decrease, and now we're starting to begin to sell the units that we've been purchasing in the last 12 to 18 months that were costing us more, which is further shrinking that.

Jason Berg: And then with that realization in place, we then on new units that have been purchased, we've been increasing the depreciation on that too, so we're not in a losing position when we go to sell them. So that's putting upward pressure on depreciation. And we will continue to see that increase, at least at the rate that you're seeing right now.

Speaker Change: And then with that realization in place, then on new units that have been purchased, we've been increasing the depreciation on that too, so that we're not in a lost position when we go to sell them. So that's putting the upward pressure on depreciation right now.

Jason Berg: So we're not in a lost position when we go to sell them, so that's putting the upward pressure on depreciation right now. And we will continue to see that increase at least at the rate that you're seeing right now.

Speaker Change: And we will continue to see that increase at least at the rate that you're seeing right now.

Jason Berg: All right. I don't know if my question was answered. I think that's larger trucks with larger price tag, with maybe the supply not adequate yet for U-Haul to purchase those trucks, and we might see a bolus of large trucks being bought and then all the sudden seeing the depreciation come through. Yes, I think what you're saying is that the mix of vehicles as they come in impacts that depreciation line absolutely. Right now it's being most negatively impacted by the pickups and vans, but there's a little bubble coming at us on the big truck. Assuming we can get the quantities so far, we've been buying almost based on allocation.

Steven Ralston: All right, yeah, all right. I don't know if my question was answered.

Speaker Change: All right, I don't know if my question was answered.

Joe Schoen: And then with that realization in place, we've then on new units that have been purchased, we've been increasing the depreciation on that too. So we're not in a lost position when we go to sell them, so that's putting the upward pressure on depreciation right now. And we will continue to see that increase at least at the rate that you're seeing right now.

Steven Ralston: I'm thinking about larger trucks with larger price tags, but maybe the supply is not adequate yet for U-Haul to purchase those trucks, and we might see a bolus of large trucks being bought and then all of a sudden see the depreciation come through.

Speaker Change: I'm thinking about larger trucks with larger price tags with maybe

Speaker Change: The supply is not adequate yet for U-Haul to purchase those trucks and we might see a bolus of large trucks being bought and then all of a sudden seeing the depreciation come through.

Joe Shoen: Yes, I think what you're saying is that the mix of vehicles as they come in impacts that depreciation line. Absolutely right now, it's being most negatively impacted by pickups and vans. But there's a little bubble coming at us on the big truck, assuming we can get the quantity so far we've been buying but almost based on allocation. In other words, we haven't had the flexibility. If we could have put another 1,000 trucks in, I would have been an advocate for it. Of course, we'd run it through a financial analysis, but had we bought another 1,000 big trucks, we'd see a, you know, a bump in depreciation.

Speaker Change: Yes, I think that what you're saying is that the mix of vehicles as they come in impacts that depreciation line, absolutely. Right now it's being most...

Jason Berg: All right. I don't know if my question was answered. I think that's larger trucks with larger price tag with maybe the supply is not adequate yet for U-Haul to purchase those trucks and we might see a bolus of large trucks being bought and then all the sudden seeing the depreciation come through. Yes, I think what you're saying is that the mix of vehicles as they come in impacts that depreciation line absolutely.

Speaker Change: negatively impacted.

Speaker Change: by the pickups and vans. But there's a little bubble coming at us on the big truck, assuming we can get the quantity. So far, we've been buying

Jason Berg: In other words, we haven't had the flexibility. If we could have put another thousand trucks in, I would have been an advocate for it. Of course, we'd run it through a financial analysis. And have we bought another thousand big trucks? We see a bump in depreciation. I don't think there's any doubt. I don't think you're going to see. I don't think it's going to be so visible to all of you. I don't know Jason. No, I get your question. I was Steven, and you're right. I didn't quite answer it. We are incrementally increasing as the larger trucks become available, buying them.

Speaker Change: almost based on allocation. In other words, we haven't had the flexibility.

Speaker Change: if we could have put another thousand trucks in i would have been advocate for of course we'd run it through a financial analysis but and have we bought another thousand big trucks we'd see it

Jason Berg: Right now it's being most negatively impacted by the pickups and vans, but there's a little bubble coming at us on the big truck. Assuming we can get the quantities so far, we've been buying almost based on allocation. In other words, we haven't had the flexibility. If we could have put another thousand trucks in, I would have been an advocate for it. Of course, we'd run it through a financial analysis. And have we bought another thousand big trucks, we see a bump in depreciation.

Jason Berg: I don't think there's any doubt. I don't think you're going to see it. I don't think it's going to be so obvious to all of you. I don't know, Jason.

Speaker Change: You know a bump in depreciation. I I don't think there's any doubt. I don't think you're going to see

Speaker Change: I don't think it's going to be so visible to all of you. I don't know, Jason.

Jason Berg: No, I understand your question now, Steven, and you're right, I didn't quite answer it. We are increasing the number of trucks as the larger trucks become available and buying them. We've made a lot of progress on the backlog, so I don't see another situation like we had immediately coming out of COVID. The rotation program is night and day from three years ago, so a lot of progress has been made there. The larger trucks that are dropping out are the trucks that are, you know, 15-year-old plus trucks that have a very low depreciation attached to them.

Jason: no get your question i'was even and you write andt quite answerit

Jason: we are incrementally increasing as the larger trucks become available buind them

Jason Berg: We've made a lot of progress on the backlog, so I don't see another situation like we had immediately coming out of COVID. The rotation program is night and day from three years ago. A lot of progress has been made there. The larger trucks that are dropping out are the trucks that are 15-year-plus trucks that have a very low depreciation attached to them. As those come off, not much depreciation falls off, but then the new trucks come on. There is a big depreciation number. So we're going to see more of that this year. I'm not sure if it your definitional bulls, but it is going to keep increasing as.

Speaker Change: we've made a lot of progress on the backlog so i don't see another situation like we had immediately coming out a colded

Jason Berg: I don't think there's any doubt. I don't think you're going to see. I don't think it's going to be so visible to all of you. I don't know Jason. No, I get your question. I was Steven and you're right. I didn't quite answer it. We are incrementally increasing as the larger trucks become available, buying them. We've made a lot of progress on the backlog so I don't see another situation like we had immediately coming out of COVID.

Speaker Change: The rotation program is night and day from three years ago, so a lot of progress has been made.

Speaker Change: The larger trucks that are dropping out are the trucks that are, you know, 15 year plus trucks that have a very low depreciation attached to them. So as those come off, not much depreciation falls off. But then the new trucks come on, there is a big...

Jason Berg: So as those come off, not much depreciation falls off, but then the new trucks come on, there is a big depreciation number. So we're going to see more of that this year. I'm not sure if it is your definitional bulge, but it is going to keep increasing.

Speaker Change: depreciation numbers. So we're going to see more of that this year. I'm not sure if it

Jason Berg: The rotation program is night and day from three years ago. A lot of progress has been made there. The larger trucks that are dropping out are the trucks that are 15-year-plus trucks that have a very low depreciation attached to them. As those come off, not much depreciation falls off, but then the new trucks come on. There is a big depreciation number. So we're going to see more of that this year. I'm not sure if it your definitional bulls, but it is going to keep increasing as. But we're not falling behind on rotation of big trucks right now.

Speaker Change: your definitional bulge, but it is going to keep increasing as

Jason Berg: But we're not falling behind on rotation of big trucks right now.

Steven Ralston: But we're not.

Speaker Change: But we're not falling behind on rotation of big trucks right now.

Stephen Rolston: Thank you.

Steven Ralston: Thank you. That answers my question.

Stephen Rolston: That answers my question. Getting a little granular here if the other interest income moved around. But on the line that now you have separated to see the interest being earned on a marketable security.

Speaker Change: Thank you, that answers my question. Getting a little granular here with the other interest income being moved around.

Steven Ralston: I'm getting a little granular here with the other interest income being moved around, but on the line that you now have separated to see the interest being earned on marketable security. It was lower than my expectations. You mentioned that you kept some cash on the balance sheet. Could you add some color to why you did that?

Speaker Change: But on the line that now you have separated to see the interest being earned on marketable securities.

Jason Berg: It was lower than my expectations. You mentioned that you kept some cash on the balance sheet because you had some color of why you did that. It's just cash waiting for us to invest. So, we borrowed the money a few years ago; we've been steadily working that down. I think our cash balances that moving and storage compared to a year ago are off, maybe a billion three, I think. So, so we've been working that balance down here in this next quarter. We're probably going to do another large borrowing and build that back up again, because you can see we're last 12 months, I think, our run rate on real estate investing as we're on a little over a billion three for 12 months.

Speaker Change: it was lower than my expectations you mentioned that you kept some cash on the balanceshe could you get some color of why you did that

Jason Berg: It's just cash waiting for us to spend it.

Jason Berg: It's just cash waiting for us to invest. So we borrowed the money a few years ago.

Jason Berg: Thank you. That answers my question. Getting a little granular here if the other interest income moved around. But on the line that now you have separated to see the interest being earned on a marketable security. It was lower than my expectations. You mentioned that you kept some cash on the balance sheet because you had some color of why you did that. It's just cash waiting for us to invest. So we, we borrowed the money a few years ago, we've been steadily working that down.

Speaker Change: It's just cash waiting for us to invest. So we

Jason Berg: We've been steadily working that down. I think our cash balances at moving and storage, compared to a year ago, are off maybe a billion or three. So we've been working that balance down. Here in this next quarter, we're probably going to do another large borrowing and build that back up again, again, because you can see we are. Well, last 12 months, I think our run rate on real estate investment has run a little over a billion dollars for 12 months. So I'm trying to keep enough cash available to maintain that pace here for at least the next couple years.

Speaker Change: Borrowed the money a few years ago. We've been steadily working that down I think our cash balances at moving and storage compared to a year ago are off

Speaker Change: Maybe a billion three, I think. So we've been working that balance down. Here in this next quarter, we're probably going to do another large borrowing and build that back up again, because you can see we're

Speaker Change: Last 12 months, I think our run rate on real estate investment has run a little over $1.3 billion for 12 months, so I'm trying to keep enough cash available to maintain that pace here for at least the next couple of years.

Stephen Rolston: So I'm trying to keep enough cash available to maintain that pace here for at least the next couple of years. I think there were some comments in previous conference calls that it depends to be in line with the self moving equipment business, which there was a disconnect is much stronger. Any reason for that.

Jason Berg: I think our cash balances that moving and storage compared to a year ago are off maybe a billion three, I think. So, so we've been working that balance down here in this next quarter, we're probably going to do another large borrowing and build that back up again, because you can see we're last 12 months, I think, our run rate on real estate investing as we're on a little over a billion three for 12 months.

Steven Ralston: I think there were some comments in previous conference calls that it tends to be in line with the self-moving equipment. However, business, which there was a disconnect this time, was much stronger. Any reason for that?

Speaker Change: prze ing up over seven percent

Speaker Change: And I think there were some comments in previous conference calls that it tends to

Speaker Change: Be in line with the self-moving equipment business, which there was a disconnect this time. It was much stronger. Oh

Jason Berg: So I'm trying to keep enough cash available to to maintain that pace here for at least the next couple years. I think there were some comments in previous conference calls that it depends to be in line with the self moving equipment business, which there was a disconnect is much stronger. Any reason for that. I'm sorry, you dropped out on the first part of that question, I picked it up at 7% I didn't hear what we before that.

Jason Berg: I'm sorry, you dropped out on the first part of that question. I picked it up at 7%. I didn't hear what we before that. Okay, from what I understand, your box is supposed to be generally in line with the self moving equipment business that, you know, they'll be, maybe they'll be off by a few hundred, a few hundred basis points, but generally, they'll grow about the same. Percent. And that's what I got from previous conference calls. But this time, your box was much stronger. What, five, six times stronger than the equipment business. Is there a reason for that disconnect?

Steven Ralston: I'm sorry, you dropped out of the first part of that question. I picked it up at 7%. I didn't hear what was before that. Okay.

Speaker Change: Any reason for that?

Speaker Change: I'm sorry, you dropped out on the first part of that question. I picked it up at seven percent, I didn't hear what was before that.

Jason Berg: Okay, from what I understand... U-Box is supposed to be generally in line with the self-moving equipment business, that you know, they'll be, maybe they'll be off by a few hundred basis points, but generally, they'll grow about the same percent. And that's what I got from the previous conference call. But this time, Ubox was much stronger, of what five, six times stronger than the equipment business? Is there a reason for that disconnect?

Speaker Change: Okay, from what I understand...

Speaker Change: U-Box is supposed to be generally in line with the self-moving equipment business that, you know, they'll be, maybe they'll be off by a few hundred basis points, but generally they'll grow about the same

Speaker Change: percent.

Speaker Change: And that's what I got from previous conference calls. But this time, Ubox was much stronger, what, five, six times stronger than the equipment business. Is there a reason for that disconnect?

Jason Berg: Okay, from what I understand, you box is supposed to be generally in line with the self moving equipment business that, you know, they'll be, maybe they'll be off by a few hundred, a few hundred basis points, but generally, they'll grow about the same. Percent. And that's what I got from previous conference calls. But this time, you box was much stronger. What, five, six times stronger than the equipment business. Is there a reason for that disconnect?

Jason Berg: Sure, I'll start with that. It's a smaller business that's in growth mode. So if you had the impression that it was growing the same percentage as you move before, then I apologize for you getting that impression. It's been growing much faster. What I have said is that our estimated margin on that business, which is, you know, we don't do separate P and L for it. So it's a little bit of a guess, but the operating margin is relatively close to what you're seeing for the overall moving and storage. Those move pretty close together. But the growth on that business has been for the last several years, on a percentage basis, exceeding even storage growth in most cases.

Jason Berg: Sure, I'll start with that. Well, it's a smaller business that's in growth mode. So if you had the impression that it was growing at the same percentage as it had been growing before, then I apologize for you getting that impression. It's been growing much faster. What I have said is that our estimated margin on that business, which is You know, we don't do separate P&Ls for it. So it's a little bit of a guess.

Speaker Change: Sure, I'll start with that. It's a smaller business that's in growth mode. So if you had the impression that it was growing the same percentage as you moved before, then I apologize for you getting that impression. It's been growing much faster.

Jason Berg: But the operating margin is relatively close to what you're seeing for the overall moving and storage business; those move pretty close together. But, growth in that business has been on a percentage basis exceeding even storage growth in most cases.

Speaker Change: What I have said is that our estimated margin on that business, which is

Speaker Change: You know, we don't do separate P&Ls for it. So it's a little bit of a guess. But the operating margin is relatively close to what you're seeing for the overall moving and storage, those move pretty close together. But

Joe Schoen: Sure, I'll start with that. It's a smaller business that's in growth mode. So if you had the impression that it was growing the same percentage as you move before, then I apologize for you getting that impression. It's been growing much faster. What I have said is that our estimated margin on that business, which is, you know, we don't do separate P and L for it. So it's a little bit of a guess, but the operating margin is relatively close to what you're seeing for the overall moving and storage. Those move pretty close together.

Speaker Change: The growth on that business has been for the last several years on a percentage basis exceeding even storage growth in most cases.

All right.

Steven Ralston: All right. Thank you for answering my question.

Stephen Rolston: Thank you for answering my questions.

Speaker Change: All right. Thank you for answering my questions.

David Silver: We'll go next to David Silver with C.L. King. Please go ahead.

David Silver: We'll go next to David Silver with CLK. Please go ahead.

Speaker Change: We'll go next to David Silver with C.L. King. Please go ahead.

David Silver: Yeah, thank you. I had a couple of questions. I mean, first, I apologize if I'm making you repeat yourself.

David Silver: Yeah, thank you. I had a couple of questions. First, and I apologize if I'm making you repeat yourself, but I just wanted to zero in on the 192,000 total of rental trucks at the end of your first quarter. And, you know, I guess that's a pickup from where we were in March, and it's exactly the same, I guess, as where we were 15 months ago.

Jason Berg: But the growth on that business has been for the last several years on a percentage basis exceeding even storage growth in most cases. All right.

David Silver: Yeah, thank you.

David Silver: I had a couple of questions. I mean first, and I apologize if I'm making you repeat yourself, but I just wanted to zero in on the 192,000 total of rental trucks at the end of the year of first quarter.

David Silver: But I just wanted to zero in on the 192,000 total of rental trucks at the end of the year of first quarter. And, you know, I guess that's a pickup from where we were in March, and it's exactly the same, I guess, as where we were 15 months ago. So basically, the declines in your overall, you know, rental truck portfolio that took place over 12 months, you made up in the first quarter here. Now, I know it's probably not apples to apples, but it was that you your intention.

Unknown Executive: Thank you for answering my questions.

David Silver: We'll go next to David Silver with CLK. Please go ahead. Yeah, thank you. I had a couple of questions. I mean, first and I apologize if I'm making you repeat yourself. But I just wanted to zero in on the 192,000 total of rental trucks at the end of the year of first quarter. And, you know, I guess that's a pickup from where we were in March, and it's exactly the same, I guess, as where we were 15 months ago.

Speaker Change: And, you know, I guess that's a pickup from where we were in March, and it's exactly the same, I guess, as where we were.

David Silver: So basically, the declines in your overall rental truck portfolio that took place over 12 months, you made up in the first quarter here.

Speaker Change: 15 months ago. So basically the...

Speaker Change: declines in your overall you know rental

Speaker Change: truck portfolio that took place over 12 months you made up in the

Jason Berg: Now I know it's not, probably not apples to apples, but was that your intention? And, you know, if I recall correctly, Jason, I think you said the plan was to kind of rebuild the rental fleet over, you know, fiscal 25. So I don't know, I'm just looking at what I think is a meaningful bump up in your fleet in the first quarter relative to what I was expecting for the full year. So just if you could comment on that, I'd appreciate it. Thanks.

Speaker Change: The first quarter here now. I know it's not probably not apples to apples, but

Jason Berg: And, you know, I thought if I recall correctly, Jason, I think you said the plan was to kind of rebuild the rental fleet over, you know, over fiscal 25. So, I don't know, I'm just looking at the, you know, what I think is a meaningful bump up in your fleet in the first quarter relative to what I was expecting for the full year. So just if you could comment on that, I'd appreciate it. Thank you. Sure, from a numbers perspective that a couple thousand units was the smaller pickups and cargo bands which were moving out, you know, every 12 to 24 months.

Jason: But was that your intention? And, you know, I thought, if I recall correctly, Jason, I think you said the plan was to kind of rebuild the rental fleet over, you know, over fiscal 25.

David Silver: So basically, the declines in your overall, you know, rental truck portfolio that took place over 12 months, you made up in the first quarter here. Now, I know it's not probably not apples to apples, but it was that you your intention. And, you know, I thought if I recall correctly, Jason, I think you said the plan was to kind of rebuild the rental fleet over, you know, over fiscal 25. So, I don't know, I'm just looking at the, you know, what I think is a meaningful bump up in your fleet in the first quarter relative to what I was expecting for the full year.

Speaker Change: So, I don't know, I'm just looking at the, you know, what I think is a meaningful bump up in your fleet in the first quarter relative to what I was expecting for the full year. So, just if you could comment on that, I'd appreciate it. Thank you.

Jason Berg: Sure, from a numbers perspective, that A couple thousand units were the smaller pickups and cargo vans which were moving out, you know, every 12 to 24 months. So what happened in March was we had a bunch of them pulled out and prepped for sale, and then the deliveries came. There's a little bit of a dislocation there for a moment.

Jason: Sure, from a numbers perspective that.

Speaker Change: A couple thousand of the units was the smaller pickups and cargo vans, which were moving out, you know, every 12 to 24 months. So what happened in March was...

Jason Berg: So what happened in March was we had a bunch of them pulled out in prep for sale, and then the deliveries came. There's a little bit of a dislocation there for a moment on the box trucks; they're probably up 1000 units from where they were last quarter. We've been pulling units from that fleet for sale. And now we just need sales to kind of get caught up, but there's only so many of those units that you can pull out at one time.

Jason: we had a bunch of and pull out and pre for sale and then the deliveries came there're a little bit of a dislocation there for a moment on the box truck they're probably up a thousand units from

Jason Berg: On the box trucks, they're probably up 1000 units from where they were last quarter; we've been pulling units from that fleet for sale. And now we just need sales to kind of get caught up, but there's only so many of those units that you can pull out at one time. So I think my expectation would be the fleet should be relatively flat year over year.

David Silver: So just if you could comment on that, I'd appreciate it. Thank you. Sure, from from a numbers perspective that a couple thousand units was the smaller pickups and cargo bands which were moving out, you know, every 12 to 24 months. So what happened in March was we had a bunch of them pulled out in prep for sale, and then the deliveries came. There's a little bit of a dislocation there for a moment on the box trucks, they're probably up 1000 units from, from where they were last quarter, we've been pulling units from that fleet for sale.

Jason: from where they were last quarter. We've been pulling units from that fleet for sale and now we just need sales to kind of get caught up but there's only so many of those units that you can pull out at one time.

David Silver: And so, I think toward the expectation would be the fleet should be relatively flat; you're over here. Okay, thanks for that.

Jason: So, I think towards the, my expectation would be that the fleet should be relatively flat year over year.

David Silver: Okay, thanks for that. And then I had a question, I guess, on the storage side. But, you know, in your CapEx budget, you're allocating quite a bit to build out your Storage Capacity. And then I did note this quarter, I think 0.4 million square feet of additional space were acquired, you know, inorganically or by acquisition. So when you all think about, you know, your plans for adding storage, is it?

Jason Berg: And then I had a question, I guess, on the storage side. But, you know, you are in your capex budget, you know, you're allocating quite a bit for to build out your storage capacity. And then I did note this quarter, I think, 0.4 million square feet of additional space were acquired, you know, inorganically or by acquisition. So when, when you all think about, you know, your plans for adding storage, is it, is it the case where, you know, you trade off between organic and inorganic growth. You know, bivers is build, I guess, or is it the case where you have kind of an organic growth target, you know, reflected in your capex budget and the amount of inorganic storage space that you add is, is really kind of a separate, you know, separate somewhat unrelated issue, maybe for opportunistic reasons or maybe from, I don't know, deals to take a long time to.

Speaker Change: Okay, thanks for that. And then I had a question, I guess, on the storage side. But, you know, you are in your CapEx budget, you know, you're, you're allocating quite a bit for to build out your

David Silver: And now we just need sales to kind of get caught up, but there's only so many of those units that you can pull out at one time. And so, I think toward the expectation would be the fleet should be relatively flat, you're over here. Okay, thanks for that.

Speaker Change: And then I did note this quarter, I think .4 million square feet of additional space were acquired, you know, inorganically or by acquisition.

David Silver: And then I had a question, I guess, on the storage side. But, you know, you are in your capex budget, you know, you're, you're allocating quite a bit for to build out your storage capacity. And then I did note this quarter, I think, 0.4 million square feet of additional space were acquired, you know, inorganically or by acquisition.

Speaker Change: So, when U-Haul thinks about, you know, your plans for adding storage, is it...

Speaker Change: Is it the case where, you know, you trade off between organic and inorganic growth, you know, buy versus build, I guess? Or is it the case where you have kind of a...

David Silver: Is it the case where, you know, you trade off between organic and inorganic growth? You know, buy versus build, I guess? Or is it the case where you have kind of an organic growth target, you know, reflected in your CapEx budget, and the amount of inorganic storage space that you add is really kind of a separate, you know, separate, somewhat unrelated issue, maybe for opportunistic reasons, or maybe from, I don't know, deals that take a long time to be completed? But just to comment on how the inorganic and organic elements of your growth and storage kind of play together. Thank you. Sure. This is Joe.

Speaker Change: a organic growth target, you know, reflected in your capex budget and

Speaker Change: The amount of inorganic storage space that you add is really kind of a separate, you know, separate, somewhat unrelated issue, maybe for opportunistic reasons, or maybe from

Joe Schoen: So when, when you all thinks about, you know, your plans for adding storage, is it, is it the case where, you know, you trade off between organic and inorganic growth. You know, bivers is build, I guess, or is it the case where you have kind of a organic growth target, you know, reflected in your capex budget and the amount of inorganic storage space that you add is, is really kind of a separate, you know, separate somewhat unrelated issue, maybe for opportunistic reasons or maybe from, I don't know, deals to take a long time to.

Joe Schoen: To be completed, but just the comment on how inorganic and organic elements of your growth and storage kind of play together.

Speaker Change: I don't know, deals that take a long time to be completed, but just to comment on how inorganic and organic elements of your growth and storage kind of play together. Thank you. Sure.

Joe Schoen: Thank you.

Joe Shoen: Here, this is Joe, when we're doing these, an entire new ground up. That's a two to four year process, depending on where you are.

Joe Schoen: This is Joe. And we're doing the entire new ground up. That's a two to four-year process, depending on where you are. So there's a big tail on that. So it kind of, it follows a trend line pretty much. It doesn't jump around a lot. The buying existing storage, like you said, it kind of comes and goes; we don't have a target that we want to get X amount of it. I think it's very much opportunistic. And, and most of those deals close pretty quick. Some of those things take a year. But most of them are 90 or 120 days from, you know, first look to being running the site.

Speaker Change: But we're doing those.

Speaker Change: An entire new ground up.

Speaker Change: That's a two to four year process depending on where you are, so there's a big tail on that.

Joe Shoen: So there's a big tail. So, to kind of. It follows a trend line pretty much. It doesn't jump around a lot. The buying existing storage, like you said, it kind of comes and goes; we don't have a target that we want to get x amount of it. I think it's very much opportunistic. And, and those Most of those deals close pretty quick. Some of those things take a year, but most of them are 90 or 120 days from, you know, first look to running the site. So I think you could see more volatility in that if that answers your question.

Jason: So, to kind of...

Joe Schoen: To be completed, but just the comment on how inorganic and organic elements of your growth and storage kind of play together. Thank you. This is Joe. And we're doing the entire new ground up. That's a two to four-year process, depending on where you are. So there's a big tail on that. So it kind of, it follows a trend line pretty much. It doesn't jump around a lot. The buying existing storage, like you said, it kind of comes and goes, we don't have a target that we want to get X amount of it.

Speaker Change: It follows a trend line pretty much, it doesn't jump around a lot.

Jason: The buying existing storage, like you said, it kind of comes and goes, we don't have a target that we want to get X amount of it. I think it's very much opportunistic. And, and those

Jason: Most of those deals close pretty quick. Some of those things take a year, but most of them

Jason: ninein year hundred and twenty day

Jason: from, you know, first look to...

Joe Schoen: So I think you could see more volatility of that. If that answers your question.

Jason: running the site, so I think you could see more volatility of that if that answers your question.

David Silver: Okay, no, that's helpful.

David Silver: Okay, no, that that's helpful. And then maybe Joe, just to stick with you.

Joe Schoen: I think it's very much opportunistic. And, and most of those deals close pretty quick. Some of those things take a year. But most of them are 90 or 120 days from, you know, first look to being running the site. So I think you could see more volatility of that. If that answers your question. Okay, no, that's helpful. And then maybe Joe, just to stick with you, you know, is reading in the press release the comment that you said, the competitors continue to mimic our customer service. And we have to implement more ways, you know, to satisfy the customer.

David Silver: And then maybe Joe, just to stick with you, you know, is reading in the press release the comment that you said, "the competitors continue to mimic our customer service." And we have to implement more ways, you know, to satisfy the customer.

Jason: Okay no that that's helpful and then maybe Joe just to stick with you you know I was reading in the press release the comment that you said competitors continue to mimic our customer service.

David Silver: You know, I was reading in the press release the comment that you said competitors continue to mimic our customer service, and we have to implement more ways, you know, to satisfy the customer. Could you just call out, if you wouldn't mind, can you call out one or two of the examples of mimicry you cited? And then what are the last one or two or three differentiating moves that you've made to kind of counter the moves by your competition?

Joe Shoen: And we have to implement more ways, you know, to satisfy the customer.

David Silver: Could you just call out, if you wouldn't mind, could you call out one or two of the mimic mimicry examples of the mimicry you cited.

Speaker Change: Could you just call out, if you wouldn't mind, can you call out one or two of the mimicry examples of the mimicry you cited?

Joe Schoen: And then what are the last one, two, or three differentiating moves that you've made to kind of counter, you know, counter the moves by your competition. Thank you. For not a very off physically obvious one, you'll see all our competitors now put in windows with doors visible. That, of course, is our invasion and the competitors. Almost even individual investors have figured that out now. And they just mimic us. Individual door alarms. We've been the strongest in the business of that for at least 10 years, and that gap is closing. And there's some new technologies out there too that we have chosen not yet to implement.

Joe Schoen: Could you just call out, if you wouldn't mind, could you call out one or two of the mimic mimicry examples of the mimicry you cited. And then what are the last one or two or three differentiating moves that you've made to kind of counter, you know, counter the moves by your competition. Thank you. For not a very off physically obvious one, you'll see all our competitors now put in windows with doors visible.

Jason: And then what are the last one or two or three differentiating moves that you've made to kind of counter, you know, counter the moves by your competition? Thank you.

Joe Shoen: Not a very physically obvious one, you'll see. All our competitors now put in windows with doors. That, of course, was our invasion of the competitors.

Speaker Change: Not a very physically obvious one you'll see as well.

Speaker Change: All of our competitors now put in.

Speaker Change: Windows with doors visible.

Speaker Change: That, of course, was our invasion.

Joe Shoen: Almost even individual investors have figured that out, and they just imitate it. Individual door alarms, we've been the strongest in the business of that for at least 10 years, and that gap is closing. And there are some new technologies out there, too, that we have chosen not yet to implement. And so I'm not quite sure where the individual door alarms... As far as customer service is really headed. I think we've done a tremendous amount on unattended move in or move out.

Speaker Change: and the competitors.

Speaker Change: Almost even individual investors have figured that out now.

Speaker Change: and they just mimic us.

Speaker Change: Individual door alarms, we've been the strongest in the business of that for

Jason: At least 10 years, and that gap is closing.

Speaker Change: And there's some new technologies out there too that we have chosen not yet to implement. And so I'm not quite sure where the individual door alarms are.

Joe Schoen: And so I'm not quite sure where the individual door alarms, as far as customer service, is really headed. I think we've done a tremendous amount on. Unattended move-in or move-out. So you can call it every one call, but giving the customer the ability to self move in or self move out. I think that I created very much. So, door to express.

Joe Schoen: That of course is our invasion and the competitors. Almost even individual investors have figured that out now. And they just mimic us. Individual door alarms. We've been the strongest in the business of that for at least 10 years and that gap is closing. And there's some new technologies out there too that we have chosen not yet to implement. And so I'm not quite sure where the individual door alarms as far as customer service is really headed.

Jason: As far as customer service is really headed.

Jason: I think we've done a tremendous amount on

Jason: Unattended

Joe Shoen: So, you can call whatever you want to call it, but giving the customer the ability to self-move in or self-move out. I think that I credit George Express very much for really bringing this into focus for me and giving that to me, and Story Express eventually was acquired by Extra Space, so they, of course, are now.

Jason: moving in about

Jason: So

Jason: You can call it whatever you want to call it, but giving the customer the ability to.

Jason: Self-move in or self-move out.

Speaker Change: I credit very much.

Joe Schoen: For really bringing this into focus for me and giving that to me and stories, eventually was acquired by. So they, of course, are now. Implementing that across their portfolio, you know, I don't have privy to their exact deal, but I can cut and see what they're doing. Hello, those are some easy ones.

George: George Express.

Jason: for really bringing this into focus for me and giving that to me. And Story Express eventually was acquired by Extra Space. So they, of course, are now.

Joe Schoen: I think we've done a tremendous amount on. Unattended move in or move out. So you can call it every one call, but giving the customer the ability to self move in or self move out. I think that I created very much. So, door to express. For really bringing this into focus for me and giving that to me and stories, eventually was acquired by. So they of course are now. Implementing that across their portfolio, you know, I don't have privy to their exact deal but I can cut and see what they're doing. Hello, those are some easy ones. I don't want to tell you what I think I got to add, John, because they just don't aggravate my own situation. No problem. No, I appreciate that.

Joe Shoen: Implementing that across their portfolio, you know, I don't have access to their exact deal, but I can kind of, Well, those are some easy ones. I don't want to tell you what. I think I've got an edge on it because I just don't want to aggravate my own situation.

Jason: Implementing that across their portfolio. You know, I don't have privy to their exact deal, but I can kind of see what they're doing.

David Silver: I don't want to tell you what I think I got to add, John, because they just don't aggravate my own situation. No problem. No, I appreciate that.

Richard Duquesne: and Richard Duquesne.

Speaker Change: those are some easy ones i don't want to tellyou what i think i'vegot the adjoon they just don't aggratemy own situation

David Silver: No problem. No, I appreciate that. And then maybe just this would be my last one, but when you break out your revenue revenues by, I guess, product line, the self-moving equipment rental revenues are up, you know, year over year as you called out for the first time in a number of quarters. When I look at those numbers and I think the overall market, you know, I think you indicated both in town and one way we're up, should I think that U-Haul is gaining share in kind of a static or slightly declining market?

David Silver: And then maybe just this would be my last one.

Speaker Change: No problem. No, I appreciate that. And then maybe just this will be my last one, but

David Silver: But you know, when you break out your revenue revenues by, I guess, product line. The self moving equipment revenue rental revenues are up, you know, year over year, as you, as you called out for the first time in and some number of quarters. When I look at those numbers and I think of the overall market, you know, I think you indicated both in town and one way we're up.

Speaker Change: You know, when you break out your revenues by, I guess, product line, the self-moving equipment revenue, rental revenues, are up year over year as you called out for the first time in a number of quarters.

Speaker Change: When I look at those numbers and I think of the overall market, you know, I think you indicated both in town and one way we're up.

Jason Berg: Should I think that U-Haul is gaining share in kind of a static or slightly declining market, or is this the case where, you know, the market is growing and you're sharing in the growth on both sides? And yeah, I'll just take it one step further, but if you are gaining share, I mean, I would have to get that it would have to be on the one-way sides and, you know, just giving your positioning on one way, the one-way moving side of things. So if you could just comment on maybe the relationship between the change in your self-moving equipment, rental revenues year over year and relative to the overall, you know, market share gains, static, etc.

David Silver: And then maybe just this would be my last one. But you know, when you break out your revenue revenues by, I guess, product line. The self moving equipment revenue rental revenues are up, you know, year over year as you, as you called out for the first time in and some number of quarters. When I look at those numbers and I think of the overall market, you know, I think you indicated both in town and one way we're up.

Speaker Change: Should I think that U-Haul is gaining share in kind of a static or slightly declining market, or is this the case where, you know, the market is growing and you're sharing in the growth on both sides?

David Silver: Or is this the case where, you know, the market is growing, and you're sharing in the growth on both sides? And yeah, I'll just take it one step further. But if you are gaining share, I mean, I would have to guess that it would have to be on the one way side. And, you know, just given your positioning on the one way, the one way moving, side of things. So if you could just comment on maybe the relationship between the change in your self-moving equipment rental revenues year over year and relative to the overall, you know, market share gains, static, etc. Thank you.

Speaker Change: And yeah, I'll just take it one step further, but if you are gaining share, I mean, I would have to guess that it would have to be on the one way sides and, you know, just given your positioning on one way, the one way moving.

David Silver: Should I think that U-Haul is gaining share in kind of a static or slightly declining market, or is this the case where, you know, the market is growing and you're sharing in the growth on on both sides? And yeah, I'll just take it one step further, but if you are gaining share, I mean, I would have to get that it would have to be on the one way sides and, you know, just giving your positioning on one way, the one way moving side of things.

Speaker Change: side of things. So if you could just comment on maybe the relationship between the change in your self-moving equipment rental revenues year over year and relative to the overall, you know, market share gains, static, etc. Thank you.

Jason Berg: Thank you.

Joe Schoen: There are no accurate market share numbers; that's the first thing. We, of course, have opinions that there are, there is no market share in information and curiously what's happened is you see more movement between people who rent equipment and people who will say call use owned and borrowed equipment. And there's a tremendous amount of people who basically move from the back seat of their car or truck they borrowed from work, or God forbid, a horse trailer. I see it every week. And we, I think our gains over the last 12 months have been a better placement of our product relative to the consumer.

Joe Shoen: There are no accurate market share numbers, that's the first thing. We, we, of course, have opinions.

Speaker Change: There are no accurate market share numbers, that's the first thing.

Joe Shoen: But curiously, what's happened is you see more movement between people who rent equipment and people who will say they use owned and borrowed equipment. And there's a tremendous amount of people who basically move from the backseat of their car or a truck they borrowed from work or, God forbid, a horse trailer. I see it every week.

Speaker Change: We, we, of course we have opinions, but there are, there are, there is no market share information. And curiously, what's, what happens is you see more.

David Silver: So if you could just comment on maybe the relationship between the change in your self-moving equipment, rental revenues year over year and relative to the overall, you know, market share gains, static, etc. Thank you. There are no accurate market share numbers, that's first thing. We, of course, we have opinions that there are, there is no market share in information and curiously what's what happened is you see more movement between people who rent equipment and people who will say call use owned and borrowed equipment.

Speaker Change: Movement between people who rent equipment and people who, we'll say, use owned and borrowed equipment.

Jason: And there's a tremendous amount of people who basically move from the backseat of their car or a truck they borrowed from work or, God forbid, a horse trailer. I see it every week.

Joe Shoen: We, I think our gains over the last 12 months have been a better placement of our product relative to the consumer and Jason's auxiliary materials that he posted up on the website, talk about. What percent of the population or how many miles from?

Jason: and

Speaker Change: wei think our gains over the last twelve months

Speaker Change: have been a better placement of our product.

Joe Schoen: In Jason's auxiliary materials that he hosted up on the website, he talks about what percent of the population there would be how many miles from. And we, we, and he's speaking locations; then it becomes individual pieces of equipment. So it gets very granular. But I think that we've made some progress; why there's no question in my mind we've made progress there. And so we probably didn't take it from anybody other than owned and borrowed equipment. In other words, I'm not so sure that anybody who was a name brand saw any decline. But we expanded our share of the total market but not make me at the expense of another competitor, maybe at the expense of owned and borrowed equipment.

Jason: Relative to the consumer. In Jason's auxiliary materials that he posted up on the website, he talks about

David Silver: And there's a tremendous amount of people who basically move from the back seat of their car or truck they borrowed from work or God forbid a horse trailer I see it every week. And we, I think our gains over the last 12 months have been a better placement of our product relative to the consumer. In Jason's auxiliary materials that he hosted up on the website, he talks about what percent of the population there would be how many miles from.

Jason: What percent of the population are we how many miles from?

Joe Shoen: We're we're we, And he's speaking about locations. Then it becomes individual pieces of equipment. So it gets very granular.

Jason: hel

Joe Shoen: But I think that we've made some progress. Well, there's no question in my mind; we've made progress there. And so we probably didn't take it from anybody other than owned and borrowed equipment. In other words, I'm not so sure that anybody who's a name brand saw any decline. But we expanded our share of the total market, but not making it at the expense of another competitor, maybe at the expense of owned and borrowed equipment.

Speaker Change: We're, we're, we...

Speaker Change: And he's speaking locations, then it becomes individual pieces of equipment. So it gets very granular, but I think that we've made some progress. There's no question in my mind. We've made progress there. And so we probably didn't take it from anybody other than

Speaker Change: equipment. In other words, I'm not so sure that

Speaker Change: Anybody who is a name brand saw any decline.

David Silver: And we, we, and he's speaking locations then it becomes individual pieces of equipment. So it gets very granular. But I think that we've made some progress why there's no question in my mind we've made progress there. And so we probably didn't take it from anybody other than owned and borrowed equipment. In other words, I'm not so sure that anybody who was a name brand saw any decline. But we expanded our share of the total market but not make me at the expense of another competitor maybe at the expense of owned and borrowed equipment. Very good. I appreciate all the color. Thank you.

Jason: But we expanded

Jason: Our share of the total market, but not at the expense of

Jason: another competitor, maybe at the expense of...

Jason: Owned and Borrowed Equivalent.

David Silver: Very good.

David Silver: Very good. I appreciate all the color. Thank you.

David Silver: I appreciate all the color.

Jamie Wyland: Thank you. Our next question comes from Jamie Wyland with Wyland Management.

Speaker Change: Very good. I appreciate all the color. Thank you.

Jamie Wilen: Our next question comes from Jamie Wilen with Wilen Management.

Speaker Change: Our next question comes from Jamie Wilen with Wilen Management.

Jamie Wyland: Hi, fellas. I applaud that you look long term and adding the self storage units, which is going to pay off royally over time. But, as you mentioned, in the short term, it takes, you know, let's say, on average, a three-year period for those things not to be a hindrance to the income statement. And I wonder if you could quantify, you know, how much of a hindrance it is from those units that have not yet matured. And it would be great to see that on a quarterly basis, so we could see if they're declining. I mean, I can't imagine that you're going to add much, much greater numbers annually than you, than you have been.

Jamie Wilen: Hi fellas, I applaud that you are thinking long term and adding the self-storage units, which is going to pay off royally over time. But as you mentioned, in the short term, it takes, you know, let's say on average, a three-year period for those things. Not to be a hindrance to the income statement. I wonder if you could quantify, you know, how much of a hindrance it is from those units that have not yet matured.

Jamie Wilen: Hi, fellas, I applaud that you look long term and adding the self-storage units, which is going to pay off royally over time. But as you mentioned, in the short term, it takes

Jamie Wilen: Let's say on average a three-year period for those things not to be a hindrance to the income statement. I wonder if you could quantify how much of a hindrance it is from those units that have not yet matured.

Jamie Wyland: Our next question comes from Jamie Wyland with Wyland Management. Hi, fellas. I applaud that you look long term and adding the self storage units which is going to pay off royally over time. But as you mentioned in in the short term, it takes, you know, let's say on average a three year period for those things, not to be a hindrance to the income statement. And I wonder if you could quantify, you know, how much of a hindrance it is from those units that have not yet matured.

Jamie Wilen: It would be great to see that on a quarterly basis so we can see if they're declining. I mean, I can't imagine that you're going to add much, much greater numbers annually than you have been, but I would love to see what that number is as it impacts the income statement.

Speaker Change: And it would be great to see that on a quarterly basis so we could see if they're declining. I mean, I can't imagine that you're going to add much, much greater numbers annually than you have been, but I would love to see what that number is as it impacts the income statement.

Jamie Wyland: But I would love to see what that number is, as it impacts the income statement.

Joe Schoen: Well, this is Joe. I feel a little bit, this is like the insurance company wants to have a device knows by speeding or not. Okay, I appreciate your more on my side than the insurance company is. It's not, we don't have that calculation or make that calculation. The list, Jason doesn't, doesn't tell him. Okay, so I'm very aware of it.

Joe Shoen: Well, this is Joe. I feel a little bit like the insurance company wants to have a device to know if I'm speeding or not.

Speaker Change: Well this is Joe, I feel a little bit, this is like the insurance company wants to have a device to know if I'm speeding or not.

Joe Shoen: I appreciate you're more on my side than the insurance company is. We don't have that calculation or make that calculation unless Jason does it and doesn't tell me. Okay, so I'm very aware of it. I've been trying to reposition the last one. I've been effective at repositioning us over the last 24 to 30 months to get into some submarkets that I think I can reliably fill additional rooms in. So, not to, but

Speaker Change: I appreciate you're more on my side than the insurance company is. It's not...

Jamie Wyland: And it would be great to see that on a quarterly basis so we could see if they're declining. I mean, I can't imagine that you're going to add much, much greater numbers annually than you, than you have been. But I would love to see what that number is as it impacts the income statement.

Jason: We don't have that calculation or make that calculation unless Jason does it and doesn't tell me.

Jason: Okay, so I'm very aware of it.

Joe Schoen: I've been trying to reposition the last. I've been effective at repositioning us over the last 24 to 30 months to get into some submarkets that I think I can reliably fill additional rooms in. So, not to, but adding a tremendous more, you know, rooms in downtown L.A., I'm not sure it's really my best interest or the company's best interest in that while we're adding a little bit, that's not really the thrust. We're looking for other markets that we think are going to allow us a little bit better cost advantage and a little bit, I guess, a cost advantage, where we've really, we're, and you can't see it, and I don't have an ask Jason this question, if you want to. I think our newest projects are starting to rent up at a better rate than we were 24 months ago, or 18, and that, that trend I'm hoping will continue. That way we're doing this, I think it's going to continue.

Speaker Change: i've been trying to reposition the last

Joe Schoen: Well, this is Joe, I feel a little bit, this is like the insurance company wants to have a device knows by speeding or not. Okay, I appreciate your more on my side that the insurance company is, it's not, we don't have that calculation or make that calculation, the list, Jason doesn't, doesn't tell him. Okay, so I'm very aware of it. I've been trying to reposition the last, I've been effective at repositioning us over the last 24 to 30 months to get into some submarkets that I think I can reliably fill additional rooms in, so not to, but adding a tremendous more, you know, rooms in downtown L.A., I'm not sure it's really my best interest or the company's best interest in that while we're adding a little bit, that's not really the thrust, we're looking for other markets that we think are going to allow us a little bit better cost advantage and a little bit, I guess, a cost advantage, where we've really, we're, and you can't see it, and I don't have an ask Jason this question, if you want to, I think our newest projects are starting to rent up at a better rate than we were 24 months ago, are 18 and that, that that trend I'm hoping will continue, that way we're doing this, I think it's going to continue.

Jason: I've been effective at repositioning us over the last 24 to 30 months.

Speaker Change: to get into some sub-markets.

Jason: I think I can.

Jason: reliably fill additional rooms in.

Joe Shoen: Adding a tremendous amount of, you know, rooms in downtown LA, I'm not sure is really in my best interest or the company's best interest. And while we're adding a little bit, that's not really the thrust. We're looking for other markets that will allow us a little bit better. Cost advantage at a little bit. I guess a cost advantage.

Jason: adding a tremendous more, you know, rooms in downtown LA, I'm not sure is really in my best interest or the company's best interest. And while we're adding a little bit, that's not really the thrust, we're looking for other markets that we think are

Jason: will allow us a little bit better

Joe Shoen: Where we've really, we're, and you can't see it, and I don't know, I haven't asked Jason this question, if he wants to. I think our newest project is starting to rent at a better rate than we were 24 months ago, are 18 and that, that trend, I'm hoping will continue the way we're doing this. I think it's going to continue. And so, and I think that might be my slowness, there is more to the difference with Jason.

Jason: Cost advantage at a little bit.

Jason: I guess a cost advantage where we've really we're and you can't see it and I don't know I haven't asked Jason this question if he wants to.

Jason: I think our newest projects.

Jason: are starting to rent up at a better rate than we were 24 months ago.

Jason: are 18 and that

Jason: That that trend I'm hoping will continue that way we're doing this. I think it's going to continue and so and I think that might be part of my slowness

Jason Berg: And so, and I think that my decline of my slowness is more in the difference, which Jason, I don't remember the number, but we're down like 1.5% in same store in occupancy. That's a lot of rooms at the end of the day, that's like 900 locations all being down 1%, and so there's a bigger drag there, or listen, there's an equal drag there to the drag of new construction in my judgment, although I do not have a mathematical equation, Jamie, on that. But I think my opportunity is there as much as it is in the speed at which I put in new units. That's kind of, would you still say it takes about three years for these, for new units to start to be contributing?

Joe Shoen: I don't remember the number, but we're down like one and a half percent in the same store in occupancy. That's a lot of rooms at the end of the day. That's like 900 locations all being down 1%. And so there's a bigger drag there. There's an equal drag there to the drag of new construction, in my judgment, although I do not have a mathematical equation, Jamie, on that. But I think my opportunity is there as much as it is in the speed at which I put in new units. That's kind of.

Jason: is more in the difference with Jason. I don't remember the number, but we're down like one and a half percent in same store in occupancy. That's a lot of rooms at the end of the day.

Speaker Change: That's like 900 locations all being down 1%. So there's a bigger drag there, there's an equal drag there to the drag of new construction in my judgment, although I do not have a...

Joe Schoen: And so, and I think that my decline of my slowness is more in the difference, which Jason, I don't remember the number, but we're down like 1.5% in same store in occupancy, that's a lot of rooms at the end of the day, that's like 900 locations all being down 1%, and so there's a bigger drag there, or listen, there's an equal drag there to the drag of new construction in my judgment, although I do not have a mathematical equation, Jamie on that, but I think my opportunity is there as much as it is in the speed at which I put in new units, that's kind of, would you still say it takes about three years for these, for new units to start to be contributing? Yeah, I think that's Jason, do you know what you're saying?

Jamie Wilen: A mathematical equation, Jamie, on that.

Jamie Wilen: But I think my opportunity is there as much as it is.

Jamie: In the speed at which I put in new units. That's kind of.

Jamie Wilen: I will. I will. I will.

Jamie Wilen: Would you still say it takes about three years for new units to start contributing?

Jamie: I will.

Jamie Wilen: Would you still say it takes about three years for new units to start to be contributing?

Jason Berg: Yeah, I think that's Jason's election speculation.

Jason Berg: Yeah, I think that's Jason. Do you know what you're saying? Yeah, it's still trending that way. It increased during COVID; we picked up 10 to 15 points of occupancy per year during COVID. We're now kind of back to normal. The projects that launched the last 12 months, the first three quarters of those projects' occupancy was lagging from our historical average, and then it seemed to pick up in the last quarter, which would point to some of it is just management on that, and we're kind of back to where we would expect to be at the end of 12 months.

Jason Berg: Yeah, it's still trending that way. It increased during COVID. We picked up 10 to 15 points of occupancy per year during COVID. We're now kind of back to normal, the projects that launched in the last 12 months. For the first three quarters of those projects, occupancy was lagging from our historical average, and then it seemed to pick up in the last quarter, which would point to some of it being just management on that.

Jamie: Yeah, I think that's Jason, do you want to speak in? Yeah, it's still trending that way. It increased during COVID. We picked up 10 to 15 points of occupancy per year during COVID. We're now kind of back to normal. The projects that launched the last 12 months.

Jason: The first three quarters of those projects.

Jason: Occupancy was lagging from our historical average and then it seemed to pick up in the last quarter which would point to some of it is just management.

Joe Schoen: Yeah, it's still trending that way, it increased during COVID, we picked up 10 to 15 points of occupancy per year during COVID, we're now kind of back to normal, the projects that launched the last 12 months, the first three quarters of those projects occupancy was lagging from our historical average, and then it seemed to pick up in the last quarter, which would point to some of it is just management on that, and we're kind of back to where we would expect to be at the end of 12 months. On your overall question, my sense of it is that the new projects are not necessarily a year over your drag on the operating margin, but certainly it's.., been a drag on the return on equity and assets. You certainly seen that defect there.

Jason: on that and we're kind of back to where we would expect to be at the end of

Jason Berg: And we're kind of back to where we would expect to be at the end of 12 Months. On your overall question, my sense of it is that the new projects are not necessarily a year-over-year drag on the operating margin, but certainly they're then a drag on the return on equity and assets. You're certainly seeing that defect there.

Jason Berg: On your overall question, my sense of it is that the new projects are not necessarily a year over your drag on the operating margin, but certainly it's... been a drag on the return on equity and assets. You certainly seen that defect there.

Speaker Change: On your overall question, my sense of it is that the new projects are not necessarily a year-over-year drag on the operating margin, but certainly it's...

Speaker Change: Then a drag on the return on equity and assets. You're certainly seeing that defect there

Stephen Farrell: Okay, thank you, Fel. Let's appreciate it. We'll go next to Stephen Farrell with Oppenheimer. Please go ahead.

Jamie Wilen: Okay, thank you, fellas. I appreciate it.

Speaker Change: Okay, thank you fellas, appreciate it.

Steven Farrell: We'll go next to Steven Farrell with Oppenheimer. Please go ahead.

Speaker Change: We'll go next to Steven Farrell with Oppenheimer. Please go ahead.

Stephen Farrell: Morning, operating expenses were up about 35 million year over year.

Steven Farrell: Morning. Operating expenses were up about $35 million year over year. But how much of that is from growing the business, having more locations, and personnel compared to increases in operating expenses of the existing business?

Steven Farrell: Morning. Operating expenses were up about $35 million year-over-year. How much of that is from growing the business, having more locations, personnel, compared to increases in operating expenses of the existing business?

Jason Berg: How much of that is from growing the business, having more locations personnel compared to increases in operating expenses of the existing business. It's a relatively small part of that. I don't have that number off the tip of my tongue right now. That's not a significant part of it. The new locations are not significant? No, I would say that I'll try to find the number here before the call was out in order to verify that. But it wasn't enough to put much downward pressure on the margin, I'd say that.

Jamie Wyland: Okay thank you Fel, let's appreciate it.

Jason Berg: It's a relatively small part of that. I don't have that number off the tip of my tongue right now, but that's not it's not a significant part of.

Speaker Change: It's a relatively small part of that. I don't have that number off the tip of my tongue right now.

Stephen Farrell: We'll go next to Stephen Farrell with Oppenheimer, please go ahead. Morning, operating expenses were up about 35 million year over year. How much of that is from growing the business, having more locations personnel compared to increases in operating expenses of the existing business. It's a relatively small part of that. I don't have that number off the tip of my tongue right now. That's not a significant part of it. The new locations are not significant?

Speaker Change: That's not a significant part of it.

Jason Berg: The new locations are not significant.

Speaker Change: The new locations are not significant.

Steven Farrell: No, I would say that I'll try to find the number here before the call is out in order to verify that, but it wasn't enough to put much downward pressure on the margin. I'd say that. Okay.

Speaker Change: No I would say that I'll try to find the number here before the call is out in order to verify that but it wasn't enough to put much downward pressure on the margin I'd say that.

Joe Schoen: Okay, let me help you with this. The utilities are up; they'll get whacked with property taxes, wages are up, and we're not up enough. We need to be up more in wages. It's a very competitive marketplace for quality people. So there's a lot of upward pressure on those expense lines. And of course, the challenge is to try to figure out how to configure things so the customer is willing to accept those increased expenses. And, as I pointed out earlier, the increased expense from the original equipment manufacturers on trucks, customers, they're not seeing that as a big benefit to that.

Joe Shoen: Okay, and just to clarify, let me, let me help you on this, that everything's going up, utilities are up, they're getting whacked with property taxes, wages are up, and we're not up enough. We need to be up more in wages. It's a very competitive marketplace for quality people, so there's a lot of upward pressure on those expense lines. And, of course, the challenge is to try to figure out how to configure things so the customer is willing to accept those increased expenses.

Speaker Change: Okay, and what we're facing, let me help you on this, everything's going up, utilities are up, they're getting whacked with property taxes.

Stephen Farrell: No, I would say that I'll try to find the number here before the call was out in order to verify that. But it wasn't enough to put much downward pressure on the margin, I'd say that. Okay, let me help you with this. The utilities are up, they'll get whacked with property taxes, wages are up, and we're not up enough. We need to be up more in wages. It's very competitive marketplace for quality people.

Speaker Change: wages are up and we're not up enough. We need to be up more in wages. It's very competitive marketplace for quality people. So there's a lot of upward pressure on on those expense lines. And of course, the challenge is to try to figure out how to

Speaker Change: to configure things so the customer is willing to accept those increased expenses. And as I pointed out earlier, the increased expense from the original equipment manufacturers on trucks, customers, they're not seeing that as a big benefit to them. In other words, costs went up, but

Joe Shoen: And as I pointed out earlier, the increased expense from the original equipment manufacturers on trucks, customers, they're not seeing that as a big benefit to them. In other words, costs went up, but nothing happened in, uh... There was no value increase to the customer.

Joe Schoen: In other words, costs went up, but nothing happened in; there was no value increased to the customer. So we have plenty of, you know, we have something like 33,000 employees. We've got people all over the country doing work work. And it's been a battle, and we're to continue the battle to try to make them more productive because they simply must be paid more, because they're in this pinch, they're in a vice. And so we have to try to do that. And that goes to some of it is, you know, streamlining operations, and I'm very hard focused on that. But, you know, we've squeezed a lot of the waste out of the deal so far.

Stephen Farrell: So there's a lot of upward pressure on those expense lines. And of course the challenge is to try to figure out how to configure things so the customer is willing to accept those increased expenses. And as I pointed out earlier, the increased expense from the original equipment manufacturers on trucks, customers, they're not seeing that as a big benefit to that. In other words, costs went up, but nothing happened in, there was no value increased to the customer.

Speaker Change: Nothing happened in, there was no value increase to the customer. So,

Joe Shoen: So, we have plenty of, you know; we have something like 33,000 employees. We have people all over the country doing work. And it's been a battle, and it's a continuing battle to try to make them more productive because they simply must be paid more because they're in this pinch; they're in a vice. And so we have to try to do that. And that goes to some of it is, you know, streamlining operations, and I'm very hard focused on that.

Speaker Change: We have plenty of, you know, we have something like 33,000 employees. We've got people all over the country.

Speaker Change: you know, doing work work. And it's it's been a battle and it's a continuing battle to try to make them more productive, because they simply must be paid more that because they're in this pinch.

Speaker Change: They're in a vice and so we have to try to do that and that goes to some of it is

Stephen Farrell: So we have plenty of, you know, we have something like 33,000 employees. We've got people all over the country doing work work. And it's been a battle and we're to continue the battle to try to make them more productive because they simply must be paid more because they're in this pinch, they're in a vice. And so we have to try to do that. And that goes to some of it is is, you know, streamlining operations and I'm very hard focused on that, but you know, we've squeezed a lot of the waste out of the deal so far.

Speaker Change: You know streamlining operations and

Joe Shoen: You know, we've squeezed a lot of the waste out of the deal so far. So it's not just, There's no big breakthrough that's going to come around the corner as far as I can see on that, although we're pushing on all fronts on that to try to do it. I was in a... Wendy's the other day. They would not take orders by phone, except at the kiosk. And, of course, I didn't want a bunch of junk on the burger, and I didn't want the meal, and I couldn't figure the damn kiosk out.

Speaker Change: And I'm very hard focused on that, but it's just...

Joe Schoen: So there's not just, you know, there's no big breakthrough going to come around the corner as far as I can see on that, although we're pushing on all fronts on that to try to do it.

Speaker Change: You know, we've squeezed a lot of the waste out of the deal so far, so it's not just...

Speaker Change: You know, there's no big breakthrough gonna come around the corner as far as I can see on that Although we're pushing on all fronts on that to try to do it. I was in a

Joe Schoen: I was in a Wendy's the other day. And they would not take my order except at the kiosk. And of course, I didn't want a bunch of the junk on the burger, and I didn't want the meal. And I couldn't figure the damn kiosk out. So finally, their person had to come around from the back and come up to the kiosk and do it for me. Not on at least average intelligence on these, you know, fast food deals, but there they were trying to make it work better. In fact, they went backwards and spent a ton of time to go back.

Joe Shoen: So finally, their employee had to come around from the back and come up to the kiosk and do it for me. Not at least average intelligence on these, you know, fast food deals, but there they were trying to make it work better. In fact, they went backwards and spent a ton of dough to get back. So I think we're not unique in that. I think you're seeing that all over, people who have businesses where actual human work is being done, and how can you? How can you optimize that situation or get more productive locations?

Speaker Change: Wendy's the other day.

Speaker Change: They would not take by order except at the kiosk.

Speaker Change: And of course, I didn't want a bunch of the junk on the burger, and I didn't want the meal, and I couldn't figure the damn kiosk out. So finally, their person had to come around from the back and come up to the kiosk and do it for me.

Stephen Farrell: So there's not just, you know, there's no big breakthrough going to come around the corner as far as I can see on that, although we're pushing on all fronts on that to try to do it. I was in a Wendy's the other day. And they would not take my order except at the kiosk. And of course, I didn't want a bunch of the junk on the burger and I didn't want the meal.

Speaker Change: I'm at least average intelligence on these, you know, fast food deals, but there they were trying to make it work better. In fact, they went backwards and spent a ton of dough to go backwards.

Stephen Farrell: And I couldn't figure the damn kiosk out. So finally, their person had to come around from the back and come up to the kiosk and do it for me. Not on at least average intelligence on these, you know, fast food deals, but there they were trying to make it work better. In fact, they went backwards and spent a ton of time to go back. So, I think we're not unique in that.

Joe Schoen: So, I think we're not unique in that.

Joe Schoen: I think you're seeing that all over. People who have businesses where actual human work is being done, and how can you optimize that situation or get the more productive locations. We're in that squeeze, and it's going to continue for some time. I just think that's a fact, and to the extent that you need assurance that we get that, we do get it. But there's not some magic thing around the corner, or you know a truck that cleans itself, or you know something of that nature, or storage rooms that don't have to be maintenance, or trucks that don't have to be maintenance.

Speaker Change: So, I think we're not unique in that, I think you're seeing that all over.

Speaker Change: People who have

Speaker Change: where actual human work is being done and how can you

Speaker Change: How can you optimize that situation or get to more productive locations? We're in that squeeze and it's going to continue for some time. I just think that's a fact.

Joe Shoen: We're in that squeeze, and it's going to continue for some time. I just think that's a fact, to the extent that you need assurance that we will get it. But there's not some magic thing around the corner, you know, a truck that cleans itself or, you know, something of that nature or storage rooms that don't have to be maintained or trucks that don't have to be maintained. There's no, We're going to be changing oil and changing tires at the speed of light. You know, going on into the future, and that just costs more money to me. Steven, this is Jason.

Speaker Change: to the extent that

Speaker Change: You need assurance that we get that. We do get it.

Stephen Farrell: I think you're seeing that all over people who have businesses where actual human work is being done and how can you optimize that situation or get the more productive locations. We're in that squeeze and it's going to continue for some time. I just think that's a fact and to the extent that you need assurance that we get that, we do get it. But there's not some magic thing around the corner or you know a truck that cleans itself or you know something of that nature or storage rooms that don't have to be maintenance or trucks that don't have to be maintenance. There's no, we're going to be changing oil and changing tires at the speed of light. I'm going on into the future and that just costs more money to that. Let's keep in this, Jason.

Speaker Change: But there's not some magic thing around the corner, you know, a truck that cleans itself or, you know, something of that nature or storage rooms that don't have to be.

Joe Schoen: There's no, we're going to be changing oil and changing tires at the speed of light. I'm going on into the future, and that just costs more money to that.

Speaker Change: maintenance or trucks that don't have to be maintenance. There's no

Speaker Change: We're going to be changing oil and changing tires at the speed of light.

Speaker Change: you know going on into the future and that just costs more money today.

Jason Berg: Let's keep in this, Jason. I just checked, and locations that we had this first quarter that we didn't have first quarter of last year accounted for a little more than $2 million of additional operating. That gives you a flavor. That does. Thank you.

Jason Berg: Steven, this is Jason. I just checked the locations that we had this first quarter that we didn't have. The first quarter of last year accounted for a little more than $2 million of additional operating expenses, but that gives you a flavor.

Speaker Change: That's Steven, that's Jason. I just checked and locations that we had this first quarter that we didn't have.

Speaker Change: The first quarter of last year accounted for a little more than $2 million of additional operating spend, but that gives you a flavor.

Stephen Farrell: And just to clarify the comments on your fleet size, you said it would be flat for the rest of the year. Is that from the June 30 number or March? It'll be some; it'll probably be somewhere in between there, and every time I make a projection or a prognostication on fleet, something changes around here. I'm usually within a couple thousand trucks of where we're right. So we could be plus 2,000 over where we were at March or below that.

Steven Farrell: And just to clarify the comments on your fleet size, you said it would be flat for the rest of the year. Is that from the June 30 number or March?

Speaker Change: That does, thank you.

Speaker Change: And just to clarify the comments on your fleet size, you said it would be flat for the rest of the year. Is that from the June 30 number or March?

Jason Berg: I just checked and locations that we had this first quarter that we didn't have first quarter of last year accounted for a little more than $2 million of additional operating. That gives you a flavor. That does. Thank you. And just to clarify the comments on your fleet size, you said it would be flat for the rest of the year. Is that from the June 30 number or March? It'll be some, it'll probably be somewhere in between there and every time I make a projection or a prognostication on fleet, something changes around here.

Jason Berg: It'll probably be somewhere in between there, and every time I make a projection or a prognosis on fleet, something changes around here. You know, I'm usually within a couple thousand trucks of where we're right. So we could be plus 2000 over where we were in March, or

Speaker Change: It will probably be somewhere in between there and every time I make a projection or prognostication on fleet something changes around here.

Speaker Change: You know, I'm usually within a couple thousand trucks.

Speaker Change: of where we're right. So we could be plus 2000 over where we were at March or

Joe Schoen: And the last conference call you talked about potentially reducing the fleet size by about three or four thousand trucks. And that would put it kind of significantly lower from where we are now. Is that something that is still in the works or could happen?

Joe Shoen: And on the last conference call, you talked about potentially reducing the fleet size by about three or 4000 trucks. And that would put it kind of significantly lower from where we are now. Is that something that is still in the works or could happen? This is Joe.

Speaker Change: or below that.

Speaker Change: And on the last conference call, you talked about, you know, potentially reducing the fleet size by about three or four thousand trucks.

Speaker Change: And that would put it kind of significantly lower from where we are now. Is that something that is still in the works or could happen?

Jason Berg: I'm usually within a couple thousand trucks of where we're right. So we could be plus 2,000 over where we were at March or below that. And the last conference call you talked about potentially reducing the fleet size by about three or four thousand trucks. And that would put it kind of significantly lower from where we are now. Is that something that is still in the works or could happen? This is Joe.

Joe Schoen: This is Joe. We did that as to part of our fleet. When you look at that by a model basis, we did that. And then we had the opportunity to purchase a few more trucks. Became available, as I have indicated before, we've basically been on allocation on other trucks. And the market is softening just a tiny bit. So the OEs came back with some, quote, more capacity, okay? Well, it was the motorhome guys took a tank within the tank. And so they use a very similar truck to what we do. So they were able to change their production line to make you all trucks instead of motorhome chassis.

Joe Shoen: This is Joe. We did that as to part of our fleet that when you look at that by a model basis we did that and then we had the opportunity to purchase a few more trucks became available as I have indicated before we basically did an allocation on other trucks and the market is softening just a tiny bit so the OE's came back with some quote more capacity okay well it was the motorhome guys took a tank with the tank and so they use a very similar truck to what we do so they were able to I would say ordinarily, but in past decades, we could tell you 10 months from now what we're going to produce damn near to the day, and the automakers had their, Supply Lines, basically the trigger of the day.

Speaker Change: This is Joe. We did that as to part of our fleet that when you look at that by a model basis We did that and then we had the opportunity to purchase a few more trucks became available as I

Speaker Change: have indicated before, we've basically done an allocation on other trucks.

Speaker Change: And the market is softening just a tiny bit. So the OE's came back with some quote more capacity. Okay. Well, it was the motorhome guys took a tank with the tank. And so they use a very similar truck to what we do. So they were able to to

Jason Berg: We did that as to part of our fleet. When you look at that by a model basis, we did that. And then we had the opportunity to purchase a few more trucks became available as I have indicated before we've basically been on allocation on other trucks. And the market is softening just a tiny bit. So the OEs came back with some, quote, more capacity, okay? Well, it was the motorhome guys took a tank within the tank.

Joe Schoen: And so we got them. So you know, there was a little opportunism there. And we're going to have that persist, at least through December, I think, that we're going to get just a wee bit more than we had planned for it. And narrowly, obviously, ordinarily, but in past decades, we could tell you 10 months from now what we're going to produce down there to the day. And the automakers had their supply lines, basically the trigger them to the day.

Speaker Change: changed their production line to make U-Haul trucks instead of motorhome chassis. And, and so we got them. So we, you know, there was a little opportunism there. And we're going to have that persist at least through December , I think that we're going to get just a wee bit more than than we had planned. Ordinarily.

Speaker Change: I'm going to say ordinarily, but in past decades, we can tell you 10 months from now what we're going to produce damn near to the day.

Jason Berg: And so they use a very similar truck to what we do. So they were able to change their production line to make you all trucks instead of motorhome chassis. And so we got them. So you know, there was a little opportunism there. And we're going to have that persist, at least through December, I think, that we're going to get just a wee bit more than we had planned for it. And narrowly, obviously ordinarily, but in past decades, we could tell you 10 months from now, what we're going to produce down there to the day.

Speaker Change: and the automakers had their

Joe Schoen: It's so confused now. Let me give you a point in time. There's 20 or 30 entire missing trucks between us and the OV. I mean, they just got noses where the trucks are. And that that supply chain is incredibly complex and largely beyond our control. And so not only does the manufacturer ferry the week they produce the trucks, which before they were, they were like a railroad train. They could tell you what they were going to build in September to the day and be highly accurate. They no longer have that tight of a supply chain.

Joe Shoen: It's so confused now at any given point in time. There are 20 or 30 entire missing trucks between us and the OE. I mean, God knows where the trucks are. And that supply chain is incredibly complex and largely beyond our control. And so not only does the manufacturer vary the week they produce the trucks, which before they would, they were like a railroad train; they could tell you what they were going to build in September to the day and be highly accurate. But they no longer have that tight of a supply chain. And I don't know all their problems.

Speaker Change: supply lines, basically the trigger of the day. It's so confused now at any given point in time.

Speaker Change: There's 20 or 30 entire missing trucks between us and the OE. I mean, they're just, God knows where the trucks are. And that supply chain is incredibly complex.

Speaker Change: and largely beyond our control. And so not only does the manufacturer vary the week they produce the trucks, which before they would, they were like a railroad train, they could tell you what they were going to build in September to the day and be highly accurate. They no longer

Jason Berg: And the automakers had their supply lines, basically the trigger them to the day. It's so confused now. Let me give you a point in time. There's 20 or 30 entire missing trucks between us and the OV. I mean, they just got noses where the trucks are. And that that supply chain is incredibly complex and largely beyond our control. And so not only does the manufacturer ferry the week they produce the trucks, which before they were they were like a railroad train.

Joe Shoen: I'm sure they're working very hard, but that impacts us when you look at the total fleet. So yes, we did drop probably 4,000 trucks on the small end of the fleet. And then we picked up a few thousand trucks on the big end of the fleet. And the other one you have to look at, because what varies the fleet more than anything else is the rate at which you sell. You see, so we have a bunch. Thanks for, would be most appreciated, and what's called, you know, starts and fits in bringing new equipment in.

Joe Schoen: And I don't know all their problems. I'm sure they're working very hard. But that impacts us in the when you look at the total fee. So yes, we did drop probably 4,000 trucks on the small end of the fleet. And then we picked up a few thousand trucks on the big end of the fleet. And the other one you have to look at because what varies the fleet more than anything else is the rate at which you sell. So we have a bunch of starts and fifths in bringing new equipment in. And then, of course, we think we're planning when we're going to sell it, but we don't always sell as well as we had planned.

Speaker Change: have that tight of a supply chain. And I don't know all their problems. I'm sure they're working very hard.

Speaker Change: But that impacts us when you look at the total fleet. So yes, we did drop probably 4,000 trucks.

Speaker Change: on the small end of the fleet. And then we've picked up a few thousand trucks on the big end of the fleet. And the other one you have to look at, because what varies the fleet more than anything else is the rate at which you sell.

Jason Berg: They could tell you what they were going to build in September to the day and be highly accurate. They no longer have that tight of a supply chain. And I don't know all their problems. I'm sure they're working very hard. But that impacts us in the when you look at the total fee. So yes, we did drop probably 4,000 trucks on the small end of the fleet. And then we picked up a few thousand trucks on the big end of the fleet.

Speaker Change: You see, so, we have a bunch of them.

Speaker Change: Thanks for that.

Speaker Change: Hope to see you all soon.

Joe Shoen: And then, of course, we think we're planning when we're going to sell it, but we don't always sell as well as we had planned. And so there's It's, there's not a four-alarm fire going, but there's some resistance in the resale market right now, and I think it's because the consumer is pushing on the new truck pricing. And I think that's common knowledge. The Wall Street Journal reports that.

Speaker Change: and what's called, you know, so starts and fits in in bringing new equipment in. And then, of course, we, we think we're planning when we're going to sell it, but we don't always sell as well as we had planned. And so there's

Joe Schoen: So there's not a four-long fire going, but there's some resistance in the resale market right now. And I think it's because the consumer is pushing on the new truck pricing. And I think that's common knowledge. And so that reflects itself. Of course, it kind of trickles down through use truck pricing. So there's in demand. Again, in the middle of COVID, hell, we say we want to sell the truck that we got for the line of people by it. Well, that's not the case today.

Jason Berg: And the other one you have to look at because what varies the fleet more than anything else is the rate of which you sell. So we have a bunch of starts and fifths in bringing new equipment in. And then of course we think we're planning when we're going to sell it, but we don't always sell as well as we had planned. So there's not a four long fire going, but there's some resistance in the resale market right now.

Speaker Change: There's not a...

Speaker Change: You know, a four-alarm fire going, but there's there's some resistance in the resale market.

Speaker Change: right now. And I think it's because these

Speaker Change: The consumer is.

Speaker Change: pushing on the new truck pricing. And I think that's common knowledge, Wall Street Journal reports that. And so that reflects itself, of course, kind of trickles down through.

Joe Shoen: And so that reflects itself, of course, kind of trickles down through used truck pricing. So there's and demand. Again, in the middle of COVID, health. We said we wanted to sell the truck, and we had a line of people waiting to buy it. Well, that's not the case today. Now we're still selling the trucks, and we're keeping more or less on schedule, but not as tight as we would like.

Speaker Change: through used truck pricing. So there's

Speaker Change: and Demand. Again, in the middle of COVID, hell.

Speaker Change: We said we wanted to sell the truck, but we didn't have the line of people to buy it. Well, that's not the case today. Now, we're still selling the trucks, and we're keeping...

Joe Schoen: Now we're still selling the trucks, and we're keeping more or less on program, but not as tight as we would like it to be.

Jason Berg: And I think it's because the consumer is pushing on the new truck pricing. And I think that's common knowledge. And so that reflects itself. Of course, it kind of trickles down through through use truck pricing. So there's in demand. Again, in the middle of COVID, hell, we say we want to sell the truck that we got for the line of people by it. Well, that's not the case today. Now we're still selling the trucks and we're keeping more or less on program, but not not as tight as we would like it to be.

Speaker Change: More or less on program, but not.

Speaker Change: Not as tight as we would like it to be.

Jason Berg: And you touched on potential capital raised during the quarter. And how big would that be? And what sort of your optimal level for cash and just to operate the business going forward? Sure. So it being the form of a private placement $500 million. Our optimal level of cash is, you know, it kind of changes. Our floor historically has been. And I've been allowed to keep enough cash to cover a year of debaturities, excluding the fleet revolvers. Well, we're well above that now. But I've mentioned it earlier in the call. In the last year, I think we've deployed our net cash balances have decreased over a billion three.

Steven Farrell: And you touched on potential capital raises during the quarter. And how big would that be? And what's sort of your optimal level for cash to operate the business going forward?

Speaker Change: And you touched on potential capital raise during the quarter. How big would that be and what's sort of your optimal level for cash?

Jason Berg: Sure, so it'd be in the form of a private placement, $500 million. The optimal level of cash is, you know, it kind of changes our floor historically has been, I've been allowed to keep enough cash to cover a year of debt maturities, excluding the fleet revolvers. Um, but we're, we're well above that now. But I mentioned it earlier in the call. In the last year, I think we've

Speaker Change: and just to operate the business going forward.

Speaker Change: Sure, so it'd be in the form of a private placement, 500 million dollars.

Speaker Change: Our optimal level of cash.

Jason Berg: And you touched on potential capital raised during the quarter. And how big would that be? And what sort of your optimal level for cash and just to operate the business going forward? Sure. So it being the form of a private placement $500 million. Our optimal level of cash is, you know, it kind of changes our floor historically has been. And I've been allowed to keep enough cash to cover a year of debaturities, excluding the fleet revolvers.

Speaker Change: is, you know, it kind of changes our floor historically has been, I've been allowed to keep enough cash to cover a year of debt maturities, excluding the fleet revolvers.

Speaker Change: We're well above that now.

Speaker Change: But I've mentioned it earlier in the call, in the last year I think we've deployed

Jason Berg: Our net cash balances have decreased by over $1.3 billion. So I'm just trying to prepare that because we still have a couple billion dollars of development on the balance sheet that we need to finish. We're certainly higher than what we need to just run the business from day to day. But to maintain the growth rate, I'm having to be a little bit heavy on cash.

Speaker Change: Our net cash balances have decreased over a billion three. So I'm just trying to prep that because we still have

Jason Berg: So I'm just trying to prep that because we still have a couple billion dollars of development on the balance sheet that we need to finish. So we're certainly higher than what we need to just run the business from day to day. But to maintain the growth rate, I'm having to be a little bit heavy on cash.

Speaker Change: a couple billion dollars of development on the balance sheet that we need to finish. So

Speaker Change: We're certainly higher than what we need to just run the business from day to day, but to maintain the growth rate, I'm having to be a little bit heavy on cash.

Jason Berg: Well, we're well above that now. But I've mentioned it earlier in the call. In the last year, I think we've deployed our net cash balances have decreased over a billion three. So I'm just trying to prep that because we still have a couple billion dollars of development on the balance sheet that we need to finish. So we're certainly higher than what we need to just run the business from day to day. But to maintain the growth rate, I'm having to be a little bit heavy on cash. Thank you very much.

Unknown Executive: Thank you very much.

Steven Farrell: That's all. Thank you very much.

Speaker Change: That's all. Thank you very much.

Unknown Executive: This does conclude today's question and answer period.

Joe Shoen: If this does conclude today's question and answer period, I will now turn the program back over to management for any additional or closing remarks. Well, thanks, everyone.

Joe Schoen: I will now turn the program back over to management for any additional or closing remarks.

Speaker Change: This does conclude today's question and answer period. I will now turn the program back over to management for any additional or closing remarks.

Operator: Well, thanks everyone for participating today. As a reminder, one week from today, Thursday, August 15th at 11 a.m. Pacific, 2 p.m. Eastern, we'll host our 18th annual Virtual Analyst Investor Day. Participants can sign in at investors.uhaul.com. Questions for the Q&A portion can be sent prior to the meeting to ir@uhaul.com or submitted live during the event. I look forward to speaking with you next week. Thank you.

Joe Schoen: Well, thanks everyone for participating today. As a reminder, one week from today, on Thursday, August 15th at 11 a.m. Pacific, 2 p.m. Eastern, we'll host our 18th annual virtual analyst investor day. Participants can sign in at investors.uhaul.com. Questions for the Q&A portion can be sent prior to the meeting to IR at uhaul.com or submitted live during the event. Look forward to speaking with you next week. Thank you.

Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time.

Speaker Change: Well thanks everyone for participating today. As a reminder, one week from today on Thursday, August 15th at 11 a.m. Pacific, 2 p.m. Eastern, we'll host our 18th Annual Virtual Analyst and Investor Day.

Speaker Change: Participants can sign in at investors.uhaul.com. Questions for the Q&A portion can be sent prior to the meeting to ir at uhaul.com or submitted live during the event. We look forward to speaking with you next week. Thank you.

Unknown Executive: This does conclude today's question and answer period. I will now turn the program back over to management for any additional or closing remarks. Well, thanks everyone for participating today. As a reminder, one week from today on Thursday, August 15th at 11 a.m. Pacific, 2 p.m. Eastern, we'll host our 18th annual virtual analyst investor day. Participants can sign in at investors.uhaul.com. Questions for the Q&A portion can be sent prior to the meeting to IR at uhaul.com or submitted live during the event. Look forward to speaking with you next week. Thank you.

Unknown Executive: This does conclude today's program. Thank you for your participation. You may disconnect at any time.

Speaker Change: This does conclude today's program. Thank you for your participation. You may disconnect at any time.

Unknown Executive: This does conclude today's program. Thank you for your participation.

Unknown Executive: You may disconnect at any time.

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