Q1 2025 U-Haul Holding Co Earnings Call

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Operator: Please stand by, your program is about to begin. If you need assistance during your conference today, please press star zero. Good day, everyone, and welcome to today's U-Haul Holding Company First Quarter Fiscal 2025 Investor Call.

Operator: Your program is about to begin. If you need assistance during your conference today, 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.

Please standby your program is about to begin.

Speaker Change: You need assistance during your conference today, Please press Star zero.

Speaker Change: Good day, everyone and welcome to todays you haul holding company first quarter fiscal 2025 investor call at.

Operator: 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.

Speaker Change: 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. It is now my pleasure to turn.

Operator: 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.

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. Welcome to the U-Haul holding company first quarter fiscal 2025 investor call. Before we begin, I'd like to remind everyone that certain of the statements during this call, including without limitation, statements regarding revenue, expenses, income, and general growth of our business, may constitute forward-looking statements within the meaning of the Safe Harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be Certain factors could cause actual results to differ materially from those projected.

The conference over to Sebastian Reyes. Please go ahead.

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.

Sebastian Reyes: Good morning, and thank you for joining US today welcome to the you all holding company first quarter fiscal 2025 investor call.

Sebastian Reyes: As 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.

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

Sebastian Reyes: Constitute forward looking statements within the meaning of the Safe Harbor provisions of section 27 a.

Operator: 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.

Of the Securities Act of 1933 as amended and section 21 E of the Securities Exchange Act of 934 as amended.

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.

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.

Speaker Change: For a discussion of the risks and uncertainties that may affect the company's business and future operating results. Please refer to the Companys public SEC filings and Form 10-Q for the quarter ended June 32024, which is on file with the U S Securities and Exchange Commission.

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

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 for looking statements within the meeting of the Safe Harbor provisions, section 27A of the Securities Act of 1933 is amended, and section 21 E of the Securities Exchange Act of 1934 is amended.

Joe Shoen: 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. Good morning, and thanks for taking your time to participate today.

Joe Shoen: Now I'll turn the call over to Joe showing chairman of U haul holding company.

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 on those vehicles we turn after 12 to 24 months, mainly pickups and bands.

Joe Shoen: Good morning, and thanks for taking your time to participate today.

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. As you all know, automakers have been inflating the cost of internal combustion vehicles to subsidize electric vehicles. However, 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 truck is expressing itself in our P&L in the form of.

Joe Shoen: The decrease in gain on sale and increased depreciation.

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

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. 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.

Speaker Change: As you all know automakers have been inflating the cost of internal combustion vehicles.

Speaker Change: Two subsidized electric vehicles.

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

Speaker Change: As we have discussed its put you puts you on a pitch.

Joe Shoen: On those vehicles, we turn them after 12 to 24 months, mainly pickups and vans. 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 choice. We continue to see gains in self-storage, while many large competitors are not currently doing so. However, self-storage remains a close contact.

Speaker Change: On those vehicles return after 12 to 24 months.

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 retail 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.

Speaker Change: Pickups and vans.

Joe Shoen: We remain focused on reversing the decline in moving equipment transactions, and 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 it. However, self-storage remains a close contact. 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.

Speaker Change: We remain focused on reversing the decline in moving equipment transactions. It is looking like we are finally getting traction.

Same period the prior year.

Speaker Change: While U haul can't get people to move we can provide them with a better product and service.

Speaker Change: Once they are considering moving.

Speaker Change: The market is very competitive and the consumer has choices.

Speaker Change: We continue to see gains in self storage, while many large competitors are not presently doing so.

Speaker Change: Yeah.

Speaker Change: However, self storage remains a close contest.

Joe Shoen: 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. I still believe this is the right court. 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 you through the process. Thanks, Joe.

Speaker Change: U haul team will remain.

Speaker Change: Customer focused to win additional business.

Speaker Change: We have continued to add self storage units.

Speaker Change: <unk>.

Speaker Change: Faster than we are renting them up.

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, even the consumer has choices. We continue to see gains in self-storage, while many large competitors are not presently doing so.

Speaker Change: I still believe this is the right course.

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.

Speaker Change: <unk> has an outstanding team at the customer facing level.

Speaker Change: We will continue to work to be the customer's best choice.

Speaker Change: 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.

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 nonvoting share.

Jason: This quarter and $1 31 per nonvoting share for the first quarter of last year.

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 out of pace, 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.

Speaker Change: 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. 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.

Jason: 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.

Jason: 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 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: Equipment rental revenue results, we had a $15 million increase that's about one 5%.

Speaker Change: This is our first year over year increase in equipment rental revenue in eight quarters.

Jason Berg: Now I'll turn the call over to Jason to walk us through the numbers. Thanks, Joe. It 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 and gains on the disposal of retired equipment.

Speaker Change: And is 35% higher than the first quarter of fiscal 2020, which was our last quarter before the pandemic.

Speaker Change: And I mentioned this because it puts our current first quarter results above where our historical trend would have had us absent.

Speaker Change: 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.

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.

Speaker Change: Transactions and revenue per transaction in both our in town and one way markets improved.

Speaker Change: 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.

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 8 quarters, and is 35% higher than the first quarter of fiscal 2020, which was our last quarter before the pandemic. 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 for the pandemic.

Speaker Change: 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: 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 also 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, however, proceeds from the sales of retired equipment decreased by $49 million, to a total of $144 million.

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.

Speaker Change: Capital expenditures for new rental equipment were $539 million, that's an $85 million increase.

Speaker Change: We've increased our fiscal 2025 full year net capex projections.

Speaker Change: By about $40 million to $1 billion $90 million. That's due to the addition of more units that became available from one of our manufacturers.

Speaker Change: On the other side of the equation proceeds from the sales of retired equipment decreased by $49 million to a total of $144 million.

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, and 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.

Jason Berg: That's a combination of fewer sales of our smaller trucks and vans, along with lower sales proceeds per unit that we receive 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. Our occupied unit count at the end of June was up over 32,000 units compared to the same time last year.

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. 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%.

Speaker Change: 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.

Speaker Change: Switching gears to self storage, we were up $17 million, which is about 8%.

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

Speaker Change: And if you carve out the same store portfolio were up just over four 5% per foot.

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.

Speaker Change: Our occupied unit count at the end of June was up over 32000 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. 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 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 with self-storage and U-Box warehouse development costs.

Speaker Change: But as Joe alluded to during the same timeframe, we added nearly 64000 new units.

Joe Shoen: This differential then led to our average occupancy across the entire portfolio to 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%, 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. That was an $108 million increase. During the quarter, we added 17 new storage locations, along with expansion projects at several locations.

Joe Shoen: Can you split out the same store portfolio, we saw average occupancy come down by 120 basis points to 93, 9%.

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

Jason Berg: 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 4.5% 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 timeframe, we added nearly 64,000 new units.

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

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 and then another 9.2 million square feet of development pending behind that. 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.

Speaker Change: That was a $108 million increase.

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

Jason Berg: 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 and then another 9.2 million square feet of development pending behind that.

Speaker Change: The total square footage increase was just <unk>.

Speaker Change: Under $1 7 million net rentable square feet.

Jason Berg: This differential then led to our average occupancy across the entire portfolio to decline 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 the self-storage and U-Box warehouse development cost. That was an $108 million increase.

Speaker Change: We currently have.

Speaker Change: About 7.700 million new square feet being developed across 158 active projects and 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 is Moving in 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.

Speaker Change: 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.

Jason Berg: 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 2014. On a positive note, we saw fleet repair and maintenance decrease a little over $20 million, a pace that we're unlikely to maintain throughout the rest of this year. On the other hand, personnel costs were up a little over $11 million, and liability costs associated with the fleet were up $13 million.

Speaker Change: Earnings before interest taxes, and depreciation at our moving and storage segment.

Speaker Change: Adjusted to remove interest income from the prior year and I'll touch on that a little bit more here in a second.

Jason Berg: 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 as then another 9.2 million square feet of development pending behind that. 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.

Speaker Change: Increased by $16 5 million.

Speaker Change: A few comments on operating expenses at the moving and storage segment.

Jason Berg: They increased $21.5 million, leaving our operating margin before depreciation and lease expense flat with the first quarter of 2014. On a positive note, we saw fleet repair and maintenance decrease a little over $20 million, a pace that we're unlikely to maintain throughout the rest of this year. On the other hand, personnel costs were up a little over $11 million, and liability costs associated with the fleet were up $13 million. And then property taxes and building maintenance were up a combined $10 million.

Speaker Change: They increased 21 5 million, leaving our operating margin before depreciation and lease expense flat with the first quarter of 'twenty four.

Speaker Change: On a positive note, we saw fleet repair and maintenance decreased a little over $20 million a pace that is that we are unlikely to maintain throughout the rest of this year.

Speaker Change: On the other side personnel costs were up little over $11 million liability costs associated with the fleet.

Speaker Change: We're up $13 million, and then property taxes and building maintenance were up a combined $10 million.

Jason Berg: Earnings before interest taxes and depreciation that are moving in storage segment 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. 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 little over $20 million.

Jason Berg: 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. Our cash, along with availability, and unused availability from existing facilities totaled $1,567,000,000.

Jason Berg: 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 cash from existing facilities, totaled a billion five hundred and sixty seven. 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 in the moving and storage interest income. It's going to take a little bit of extra effort to make the appropriate comparison.

Speaker Change: We continue to place a premium on having access to cash at the end of June at our moving and storage segment.

Speaker Change: Our cash along with availability.

Speaker Change: Unused availability from existing facilities totaled $1.567 billion.

Operator: We saw interest, during the quarter 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 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. If you have any questions about that, please feel free to reach out to Sebastian or myself to walk you through it.

Speaker Change: We saw interest.

Speaker Change: During the quarter increased $6 6 million.

Speaker Change: 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.

Jason Berg: A pace that we're unlikely to maintain throughout the rest of the share. 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.

Operator: 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 and our 10-Q filing. You can click on these on the home page 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.

Speaker Change: Do you have any questions about that please feel free to reach out to Sebastian or myself to walk you through it.

Operator: On our Investor Relations website, investors.uhaul.com, we posted some supplemental materials this quarter that are in addition to our press release and our 10-Q filing. You can click on these on the home page and also on the lower right-hand corner of that page.

Speaker Change: On our Investor Relations website investors <unk> Dot 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.

Jason Berg: We continue to place a premium on having access to cash at the end of June that are moving in storage segment. Our 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: On the homepage and also on the lower right hand corner of that page.

Operator: 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 this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2.

Speaker Change: With that I'd 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 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. Once again, that is Star 1 to ask a question. We will pause for a moment to allow questions to queue. We'll 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 one on your telephone keypad.

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

Operator: Once again, that is Star 1 to ask a question. We will pause for a moment to allow questions to queue, and we'll take our first question from Keegan Carl with Wolf Research. Please go ahead.

Speaker Change: Once again that is star one to ask a question, we will pause for a moment to allow questions to queue.

Jason Berg: For this year there's going to be a bit of a presentation difference on the moving in 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.

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

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 and our 10Q filing. You can click on these on the homepage also on the lower right hand corner of that page.

Joe Shoen: Yeah, thanks for the time guys. Um, maybe to kick things off, Joe mentioned in 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 Karl: Yeah. Thanks for the time guys.

Keegan Karl: Maybe to kick things off Joe mentioned on the release that it feels like the customers wanting the inventories 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.

Operator: 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 1 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 you.

Keegan Karl: No.

Joe Shoen: The customer is, of course, who's going to win. I know that we view this very much as a consumer product. Some other people in the marketplace view this as a, I'll tell you, 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, that they will do that by pleasing the consumer, and that's our intent, and we believe that will give us some modest amount of the greater ability to weather 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.

Joe Shoen: All right. The customer is, of course, who's going to win. I know that the. We view this very much as a consumer product. People in the marketplace view this as a... Real Estate [inaudible] product. We view it as a.

Speaker Change: The customer is of course, who's going to win I know that the.

Speaker Change: We view this very much as a consumer product some other of our.

Keegan Karl: Other.

Speaker Change: People in the marketplace view this as a.

Speaker Change: I would say real estate.

Speaker Change: Products, we view it as a consumer.

Joe Shoen: Consumer Product, and we can bear much of that, you know. Someone can win the support of the consumer, and they will do that by pleasing the consumer, and that's our intent, and we believe that will give us, some modest amount of those, a greater ability to weather. It depends on who you talk to, but a bunch of people think it's hard times in the store. But I'm not totally of that mind. It's much more difficult to get new customers than it was two or three years ago. Keegan, this is Jason.

Speaker Change: Product and we can very much that.

Speaker Change: Someone can win the support of the consumer.

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? The customer is of course who's going to win.

Speaker Change: But we will do that by pleasingly consumer.

Speaker Change: That's our intent.

Speaker Change: That will give us.

Speaker Change: Some modest amount of.

Speaker Change: Greater ability to weather.

Speaker Change: Some hard times.

Speaker Change: Pens on who you talk to you, but it's a bunch of people think it's hard times in the storage business.

Speaker Change: Not totally up that mine, but it's much more.

Joe Shoen: It was difficult to get new customers, and it took two or three years.

Speaker Change: Difficult to get new customers and it was two or three years ago.

Keegan Carl: I know that the we view this very much as a consumer product. Some other people in the marketplace view this as a consumer product. Let's say 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. 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 think it's hard times in the storage business.

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 a decrease in pricing power.

Jason Berg: 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. We haven't yet seen any sort of decrease in pricing power.

Speaker Change: Keith This is Jason if I could also just add to that the.

Jason: 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.

Speaker Change: We haven't yet seen any sort of a decrease in pricing power there.

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?

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 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? 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 preoccupied, foot kind of trail off that's remained pretty resilient. I'm in the equipment rental business. I'm not ready to declare some sort of victory on that front.

Speaker Change: 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 in July and August across your various business segments.

Jason: I would say that.

Jason Berg: Storage has been a fairly steady performer; foot kind of trailed off that's remained pretty resilient. On the equipment rental business, I'm not ready to declare some sort of... victory on that front.

Jason: Storage has been fairly steady performer my expectation going into the year was that we would start to see revenue per occupied flip.

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

Speaker Change: What kind of trail off that's remained.

Jason: Pretty resilient.

Speaker Change: On the equipment rental business I'm, not ready to declare some sort of.

Jason Berg: Keegan, this is Jason. I could also just add to that. I mentioned a revenue proximate fund 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 there. Got it. That's really helpful.

Jason Berg: 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 in 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. 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. However, certainly, I wouldn't say that all the momentum is there yet.

Speaker Change: Victory on that front, it's been a little bit in fits and spurts. So far this year. Unfortunately, we've had more positive than we have had negative but we built up a little momentum going into July and July flattened out.

Speaker Change: Which was a little bit disappointing and now the first week of August it seems to be picking up so.

Jason Berg: 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 foot kind of trail off that's remained pre-resilient.

Speaker Change: Certainly.

Speaker Change: I wouldn't 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?

Joe Shoen: I guess just, big picture, it feels like, you know, 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? This is Joe.

Speaker Change: Got it I guess, just big picture it feels like you'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 Ms.

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.

Joe Shoen: Well, we saw increases in both. My experience is that the ratio of them is determined somewhat by the consumers of them... And we saw a little bit. Growth in the One Way, which is a little bit more optimistic consumer. Is that a trend that I wish I knew about there? 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 we saw increases in both.

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. And now the first week of August, it seems to be picking up. So we're certainly I wouldn't say that all the momentum is there yet.

Speaker Change: My experience is that.

Speaker Change: The ratio of them.

Speaker Change: Determined somewhat by the consumers optimism.

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

Speaker Change: Sure.

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

Speaker Change: We are definitely.

Speaker Change: Digging deep and having to go to every corner of the <unk>.

Speaker Change: Market to try to find business, but of course, that's what we're supposed to do anyway.

Joe Schoen: Got it. 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. So I guess we're just wondering on the moving business that anything stand out regarding the volume or cadence of in town versus one way miss.

Jason Berg: 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 customers have been getting, you know. What happened in the quarter for you guys? Have you been adjusting it at all, you know, based on what competition is doing?

Jason Berg: Got it. 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. I guess what I'm just curious about street rates, given that's what the new customer has been getting. 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: Got it I guess, just shifting gears to storage typically the quarter from April to June is a strong quarter for storage, obviously, the housing markets continuing to have an impact.

Speaker Change: What I'm just curious is maybe on street rates given that that's what the new customers been getting what happened in the quarter for you guys have you been adjusting at all based on what the competition is doing and are you seeing any positive trends versus last year in the same period.

Joe Schoen: This is Joe, what we saw increases in both, and 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.

Jason Berg: And, 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.

Joe Shoen: 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 yet but they have been running on average for us for really the last year or so, kind of plus two plus 3% in that range.

Speaker Change: Okay.

Speaker Change: I'll start off by just speaking to the actual numbers were still running a positive variance between.

Jason Berg: 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. 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 competition is doing? And are you seeing any positive trends versus last year in the same period?

Speaker Change: 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.

Jason Berg: Asking residents, this year versus last year, is 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. This is Joe.

Speaker Change: And the spread of what the incoming rate is versus the customer outgoing there's also still positive for us so.

Speaker Change: Havent seen those have been running on average for us for really the last year or so kind of plus two plus 3% in that range.

Joe Shoen: This is Joe. I would add that, in my judgment, 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. 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 Shoen: 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 a fair price.

Speaker Change: This is Joe I would add that.

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

Speaker Change: To the customers to justify our rates.

Speaker Change: And our competitors are not.

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

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 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 or so, kind of plus two plus three percent in that range.

Speaker Change: I view this as a consumer product.

Speaker Change: Yeah.

Speaker Change: If I can figure out what they want to.

Speaker Change: Reservoir of additional customers, who are willing to pay.

Joe Shoen: There's been a lot of Discounting in the Industry, that's way below cost. I don't know who Jason was. http://www.youtube.com.uk 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?

Speaker Change: A fair price there's been a lot of.

Speaker Change: Discounting in the industry.

Jason: That's way below cost of doing business either node Jason wants to.

Speaker Change: Weigh in on that but they've been pricing way way below the cost of doing business and of course that.

Jason: Usually doesn't work out over the long time.

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 theres a lot of concerns around the broader consumer, particularly in storage I guess I'm. Just curious what are you seeing any change in your average length of stay to how are customers reacting to the existing customer rate increase you are sending out and then just generally are you seeing.

Joe Schoen: This is Joe. I would add that what's in my judgment, 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 who 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.

Joe Shoen: 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? Well, there's been softness for... 2 years, just about, certainly 18 months.

Speaker Change: The signs of softness in the storage customer summit.

Speaker Change: 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, and our competitors have their ways, 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, didn't fees, any of this sort of thing. And I think that in the 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 cover.

Speaker Change: While there has been softness for.

Speaker Change: Two years, just about certainly 18 months.

Speaker Change: And.

Joe Shoen: We have our way of responding to that, and our competitors have their way. 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: We have our way of responding to that of our competitors have their way.

Speaker Change: <unk> has been to try to.

Speaker Change: Increased customer service.

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

Speaker Change: U haul facility.

Jason Berg: We haven't been doing a whole bunch of additional discounting, hidden fees, or any of this sort of thing. And I think that in the long-term, that's going to benefit us, but the jury's still out. We just have a fundamental question, and just for Jason, any commentary on the length of stay, are you seeing any difference in trends there? Sure, we've 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 one to three month range, and most of that came out of, kind of, the nine to 12, or I'm sorry, like one to two year range.

Speaker Change: You haven't been doing.

Speaker Change: A whole bunch of additional discounting.

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? 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? Well, there's been softness for two years, just about certainly 18 months.

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

Speaker Change: Long term, that's going to benefit us.

Speaker Change: But.

Speaker Change: The jury's still out on that we just have a fundamentally different way of looking at the customer.

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

Jason: And then just for Jason just any commentary on the length of stay or are you seeing any difference in trends there.

Jason Berg: 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 kind of the nine to 12, or I'm sorry, like one to two year range. So a little bit of 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. 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. Very helpful.

Speaker Change: Sure.

Jason: I looked at this for this last quarter, we saw maybe a little bit of like a 1% pick up in greater than two years.

Joe Schoen: 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 that 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.

Jason: A couple of point increase in the one to three month range and most of that came out of kind of the <unk>.

Jason: Nine to 12 or I'm, sorry, like one to two year range. So.

Jason Berg: So a little bit of 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 the 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. Thanks for the time, guys. You're welcome. Our next question comes from Stephen Ralston with SACS. Please go ahead. Good morning.

Speaker Change: A little bit and movement.

Speaker Change: To the outside but again, we're talking small percentage points.

Speaker Change: Other push point that you might look at in the strength of the consumer is what you would call our delinquency rate.

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.

Speaker Change: Deem acceptable.

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

Speaker Change: Great Super helpful. Thanks for the time guys Youre.

Jason Berg: And just for Jason, just any commenter in the length of stay, are you seeing any difference in trends 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 9-12, or I'm sorry, like 1-2-2 year range, so a little bit movement to the outside, but again, we're talking small percentage points.

Speaker Change: Youre welcome.

Speaker Change: Yeah.

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

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

Speaker Change: Okay.

Stephen Ralston: I'm going to start with, and this might sound like a gratuitous comment, but that's the first thing that comes to mind. On 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 CapEx program. This non-cash expense is basically disguising U-Haul's earnings power.

Steven Ralston: Good morning.

Stephen 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: I'm going to start with.

Speaker Change: It might sound like a gratuitous comment but.

Speaker Change: The first thing that comes to mind in the last conference call. Joe mentioned that he expected the top line to improve modestly through the calendar 2024.

Stephen 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 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, um, a thought that FX Timelines.

Speaker Change: And.

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

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. Thanks for the time, guys. You're welcome.

Speaker Change: As you mentioned.

Speaker Change: Depreciation effect is coming into play.

Speaker Change: With these.

Speaker Change: Strong capital exit Capex program.

Speaker Change: This noncash expense is basically disguising U hauls earnings power.

Stephen Ralston: I just happened to rent a van this week, and I was impressed. It was a relatively new van, under 20,000 miles. Um, and it gave me, um, a thought that, EPICS Time-Wise. I'm sorry, Steven. We lost you for a second there. You kind of dropped out when I said it gave you a thought.

Speaker Change: I just happened to Renova and this week.

Stephen Ralston: Our next question comes from Stephen Rolston with SACS. Please go ahead. Good morning.

Speaker Change: And I was impressed.

Speaker Change: Our relatively new van under 20000 miles.

Speaker Change: And it gave me.

Speaker Change: I thought that.

Stephen Ralston: I'm going to start with, it might sound like a gratuitous comment, but that's the person who comes to mind. In the last conference, Kostow 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-CAPX program. This non-cance expense is basically disguising U-Haul's earnings power.

Speaker Change: Capex timeline.

Stephen 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.

Steven Ralston: I'm sorry, Steven.

Steven Ralston: We lost you for a second there.

Steven Ralston: You kind of dropped out where it said that gave you a thought.

Stephen Ralston: Yes, it gave me a thought that 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, if that would 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?

Stephen 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? Stephen, this is Jason.

Steven Ralston: Yes give me a thought that the.

Speaker Change: And then thinking about the capex timeline that it might have been easier to buy smaller vehicles like bands as opposed to trucks and larger trucks.

Speaker Change: With itself moving rental market.

Steven Ralston: Have those.

Speaker Change: That would affect.

Speaker Change: Depreciation in that if you were buying more expensive larger trucks at the tail end of the Capex timeline, we might see depreciation even increase more.

Stephen Ralston: I just happened to run 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 CAPX time won. I'm sorry, Stephen, we lost you for a second, you kind of dropped out when it gave you a thought. Yes, it gave me a thought that I'm thinking about the CAPX 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. If that would affect depreciation, in that if you were buying more expensive larger trucks at the tail end of the CAPX timeline, we might see the depreciation even increase more. Could you speak to that?

Speaker Change: Could you speak to that.

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

Jason Berg: I'll start. 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, the line item gain on 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 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.

Jason: Stephen This is Jason.

Jason: I'll start.

Speaker Change: It's not just the larger trucks that are costing more its also the trucks that you are seeing are also cost anymore.

Jason Berg: It's not just the larger trucks that are costing more, it's also the trucks that you're seeing are also costing more. And the vast majority of our 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, 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 the line item gain on.

Speaker Change: 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.

Speaker Change: Sales proceeds year over year decrease in <unk>.

Steven Ralston: Now we're starting to begin to sell the units that we have been purchasing in the last 12 months to 18 months that were costing us more which is further shrinking that.

Jason Berg: 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 that 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.

Jason Berg: 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 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. All right, yeah, all right.

Steven Ralston: And then.

Steven Ralston: With that realization in place. We then on new units that have been purchased we've been increasing the depreciation on that too.

Joe Schoen: Stephen, 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.

Steven Ralston: So that we're not in a loss position when we go to sell them. So that's putting upward pressure on depreciation right now.

Steven Ralston: And we will continue to see that increase at least at the rate that youre seeing right now.

Jason Berg: The vast majority of our blind item gain on a 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 pick ups and that's the area where we're seeing... 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 we're costing us more, which is further shrinking that, and then with that realization in place, we've then a 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, and we will continue to see that increase at least at the rate that you're seeing right now.

Stephen Ralston: All right. I don't know if my question was answered.

Steven Ralston: Alright.

Stephen Ralston: I don't know if my question was answered, but I'm thinking about larger trucks with larger price tags, and 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 seeing the depreciation come through. Yes, I think that what you're saying is that the mix of vehicles as they come in impacts that depreciation

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

Stephen 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.

Steven Ralston: Steve. This is this is still the.

Steve: Larger trucks.

Bright: Bright tagged with maybe.

Speaker Change: The supply is not adequate yet.

Steve: <unk> haul to purchase those drugs and we might see a bolus of.

Speaker Change: Large trucks being bought and then all of a sudden seeing the depreciation come through yes, I think I think that what youre, saying is that the mix of vehicles as they come in impacts that depreciation line absolutely.

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. But there's a little bubble coming at us on the big truck, but it's 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.

Jason Berg: Right now, it's being most negatively impacted by the pickups and vane. 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.

Speaker Change: Now as being most.

Speaker Change: Negatively impacted.

Steven Ralston: By the pickups and vans, but theres, a little bubble coming at us on the big truck.

Speaker Change: Assuming we can get the quantities so far we've been buying.

Jason Berg: All right, yeah. I don't know if my question was answered. I think this is a larger truck with larger price tags with maybe the supply is not adequate yet for you all 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. Yes, I think what you're saying is that the mix of vehicles as they come in impacts that depreciation line, absolutely.

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

Joe Shoen: 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. I don't think there's any doubt. I don't think you're gonna see it.

Speaker Change: If we could put another thousand trucks in I would have been an advocate for of course, we'd run it through a financial analysis, but and.

Speaker Change: And had we bought another 1000 big trucks, we see it.

Steven Ralston: A bump in depreciation.

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

Steven Ralston: I don't think Theres any doubt I don't think youre going to see.

Joe Shoen: I don't think it's going to be so visible to all of you. I don't know, Jason. No, I understand your question now, Stephen, 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.

Steven Ralston: I don't think its going to be so visible to all of you I don't know Jason.

Jason Berg: No, I understand your question now, Stephen, and you're right, I didn't quite answer it. We are incrementally increasing 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.

Steven Ralston: No.

Steven Ralston: I get your question now Stephen and you're right I didn't quite answer it.

Speaker Change: We are incrementally increasing as the larger trucks become available buying them.

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 had we bought another thousand big trucks, we'd see a bump in depreciation.

Steven Ralston: We've made a lot of progress on the backlog so I don't see in other situations like we had.

Steven Ralston: 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.

Jason Berg: So a lot of progress has been made there. The trucks, the larger trucks that are dropping out are the ones that are 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, and there is a big depreciation number. So we're going to see more of that this year. I'm not sure if it will affect your definitional bulge, but it is going to keep increasing as well.

Speaker Change: They're the trucks the larger trucks that are dropping out or the trucks that are.

Jason Berg: 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. So as those come off, not much depreciation falls off. But then when 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's your definitional bulge, but it is going to keep increasing as...

Steven Ralston: 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 depreciation.

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: Asian numbers, so we're going to see more of that this year I am not sure if you.

Speaker Change: The definition of bulge, but it is going to.

Steven Ralston: Keep increasing.

Joe Shoen: But we're not.

Jason Berg: But we're not falling behind on the rotation of big trucks right now. Thank you. That answers my question. I'm getting a little granular here with the other interest income being moved around. Um, but on the line that you have separated to see the, uh, interest being, uh, earned on, uh, 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?

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

Jason Berg: Thank you, that answers my question. Getting a little granular here with the other interest income being moved around, um, but on the line that you now 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. Could you add some color to why you did that?

Speaker Change: Okay. Thank you that answers my question.

Steven Ralston: Getting a little granular here.

Steven Ralston: Other interest income.

Steven Ralston: Moved around.

Speaker Change: But on the line now separated to see the interest being earned on.

Jason Berg: 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 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, you're definitional bold, but it is going to keep increasing as. But we're not falling behind on rotation of big trucks right now. Thank you. That answers my question.

Steven Ralston: Marketable securities.

Speaker Change: It was lower than my expectations, you mentioned that you kept some cash on the balance sheet could you add some color why you did that.

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

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. We've been steadily working that down. I think our cash balance is moving in storage compared to a year ago or off, maybe $1.3 billion. 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 are. Well, the last 12 months, I think our run rate on real estate investment has run a little over a billion dollars for 12 months.

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

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 or off.

Jason Berg: We've been steadily working that down. I think our cash balance isn't moving in storage compared to a year ago or off by maybe a billion or 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 are. 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.

Speaker Change: Maybe $1 three I think so.

Speaker Change: So we've been working that balance down.

Speaker Change: Here in this next quarter, we're probably going to do another.

Speaker Change: Large borrowing and build that back up again.

Stephen Ralston: Getting a little granular here with the other interest income being 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: Because you can see we are.

Speaker Change: Last 12 months I think our run rate on.

Speaker Change: Real estate investment in us.

Speaker Change: A little over $1 billion three for 12 months so.

Jason Berg: So I'm trying to keep enough cash available to maintain that pace here for at least the next couple of years. It surprised me that it was up over 7%. And I think there were some comments in previous conference calls that it tends to be in line with the self-moving equipment business, but there was a disconnect this time. It was much stronger.

Speaker Change: I'm trying to keep enough cash available to maintain that pace here for at least the next couple of years.

Steven Ralston: Okay.

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

Steven Ralston: Surprised me up over 7%.

Speaker Change: And I think there were some comments in previous conference calls it tends to be in line with the self moving.

Stephen Ralston: 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 investment, we're on a little over a billion three for 12 months.

Speaker Change: Shipment.

Steven Ralston: Business, which there was a disconnect. This time it was much stronger.

Speaker Change: Any reason for that.

Stephen Ralston: 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. OK.

Jason Berg: Oh, 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 it was before that. Okay, from what I understand... U-Bots is supposed to be generally in line with the self-moving equipment business, that 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, U-Box was much stronger, of what five, six times stronger than the equipment business? Is there a reason for that disconnect?

Speaker Change: I'm sorry.

Speaker Change: You dropped out on the first part of that question I picked it up at 7% I Didnt hear what was before that.

Stephen Ralston: Okay, from what I understand... U-Bots is supposed to be generally in line with the self-moving equipment business, that 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 previous conference calls. But this time, U-Box was much stronger, what five, six times stronger than the equipment business. Is there a reason for that disconnect?

Speaker Change: Okay.

Speaker Change: From what I understand you bonds.

Speaker Change: Post to be generally in line with the self moving equipment business.

Stephen Ralston: So, I'm trying to keep enough cash available to to maintain that pace here for at least the next couple of years. Surprise me up over seven percent. And I think there were some comments in previous conference calls that it tends to be in line with the self moving equipment business, which there was a disconnect in this time. It was much stronger. Oh, any reason for that. I'm sorry. You dropped out on the first part of that question.

Speaker Change: Maybe there'll be off by a few hundred dollars.

Speaker Change: Q1 hundred basis points, but generally they'll grow about the same.

Speaker Change: Percent.

Speaker Change: That's what I got from previous conference calls.

Speaker Change: But this time.

Speaker Change: Mix was much stronger.

Speaker Change: Slide six times stronger than that.

Speaker Change: Our equipment business.

Speaker Change: 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 at the same rate 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 our estimated margin on that business, which is, You know, we don't do separate P&Ls for it.

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, but the operating margin is relatively close to what you're seeing for the overall movement of 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.

Speaker Change: Sure I'll start with added.

Speaker Change: It's a smaller business that's in growth mode.

Speaker Change: If you had the impression that it was growing the same percentage as you move before then.

Stephen Ralston: I picked it up at seven percent. I didn't hear what we before that. 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 percentage. And that's what I got from previous conference calls. But this time, you box was much stronger, but five, six times stronger than the equipment business. Is there a reason for that disconnect?

Speaker Change: Apologize, if you're getting that impression thats been growing much faster.

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

Speaker Change: We don't do separate P&L for it so it's a little bit of a guess but.

Speaker Change: The operating margin that is relatively close to what youre seeing for the overall moving and storage those move pretty close together, but.

Speaker Change: The growth on that business has it has been for the last several years on a percentage basis exceeding.

Speaker Change: Even storage growth in most cases.

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

Speaker Change: Alright, Thank you for answering my questions.

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

Jason Berg: 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 business. 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. All right. Thank you for answering my question. We'll go next to David Silver with CL King.

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 PNLs 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.

Speaker Change: We will go next to David Silver with CL King. Please go ahead.

Stephen Ralston: All right. Thank you for answering my questions.

Speaker Change: Okay.

Speaker Change: Yes.

David Silver: Please go ahead. 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 pick-up 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 rental truck portfolio that took place over 12 months. You made up for it in the first quarter here.

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.

David Silver: Yes. Thank you.

Jason Berg: Now, I know it's 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. Thank you.

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

Speaker Change: Just wanted to zero in on the 192000 total of.

Speaker Change: Of rental trucks at the end in your first quarter.

Speaker Change: And I.

Speaker Change: I guess, that's a pick up from where we were in March and it's exactly the same I guess is where we were.

Jason Berg: So basically, the declines in your overall rental truck portfolio that took place over 12 months have been made up in the first quarter here. Now, I know it's 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. B-T-Y-T-O-O-U

Speaker Change: 15 months ago, so basically the.

Speaker Change: Declines in your overall rental.

Speaker Change: Truck portfolio.

Speaker Change: Place over 12 months, you've made up in the.

Speaker Change: The first quarter.

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

David Silver: We'll go next to David Silver with CL King. Please go ahead. Yeah. Thank you. I had a couple of questions.

Speaker Change: Was that your intention.

Speaker Change: I thought.

Speaker Change: If I recall correctly, Jason I think you said the plan was to kind of rebuild the rental fleet over over fiscal 'twenty five.

David Silver: 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. 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: I don't know Im just looking at the 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 just.

Speaker Change: 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 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 Berg: Sure, from a numbers perspective, A couple thousand units were the smaller pickups and cargo vans, which were moving out 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.

Speaker Change: Sure from a numbers perspective.

Speaker Change: Couple of thousands of units was the smaller pickups and cargo vans, which we're moving out.

Speaker Change: Every 12 months to 24 months so.

Speaker Change: What happened in March was we had a bunch of them pulled out and prep for sale and then the deliveries came and there was a little bit of a location there for a moment.

David Silver: Now, I know it's not probably not apples to apples, 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. 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.

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 my expectation would be that the fleet should be relatively flat year over year.

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. There's only so many of those units that you can pull out at one time. So I think, my expectation would be that the fleet should be relatively flat year over year. Okay, thanks for that.

Speaker Change: On the box trucks, they are probably up a thousand units from 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 theres only so many of those units that you can pull out at one time.

Speaker Change: So.

Speaker Change: I think towards the 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 that was removing out, you know, every 12 to 24 months. So what happened in March was we had a bunch of them pulled out and prep for sale. And then the deliveries came. There's a little bit of a dislocation there for a moment.

Joe Shoen: 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 U-Haul thinks about, you know, its plans for adding storage, is it, is it the case where, you know, you trade off between organic and inorganic growth? You know, buy versus build, I guess?

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 that I think 0.4 million square feet of additional space were acquired, you know, inorganically or by acquisition. So when U-Haul thinks about, you know, your plans for adding storage, is it?

Speaker Change: Okay. Thanks for that and then I had a question I guess on the storage side, but you are in your Capex budget.

Speaker Change: Allocating quite a bit for to build out your.

Speaker Change: Storage capacity and then I did note this quarter I think 4 million square feet of additional space were acquired inorganically or by acquisition.

David Silver: And on the box trucks, they're probably up a thousand units from 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. There's only so many of those units that you can pull out at one time. So I think toward the expectation would be that the fleet should be relatively flat, you're over here. Okay, thanks for that.

Joe Shoen: 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.

Speaker Change: When when you haul thinks about your plans for adding storage is it.

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 a, 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: Is it the case, where you trade off between organic and inorganic growth.

Speaker Change: Buy versus build I guess.

Speaker Change: Or is it the case, where you have kind of a.

Speaker Change: Hey, organic growth target reflected in your Capex budget and the.

Speaker Change: The amount of inorganic.

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 bi acquisition.

Speaker Change: Storage space that you add is really kind of a separate.

Speaker Change: Separate somewhat unrelated issue maybe for opportunistic reasons or maybe from I don't know deals that take a long time too.

Speaker Change: To be completed, but just a comment on how inorganic and organic elements of your growth in storage kind of play together. Thank you.

Joe Shoen: Thank you. Sure. This is Joe. And we're doing these, an entire new ground up. That's a two- to four-year process, depending on where you are.

Joe Shoen: This is Joe. And we're doing these from the ground up. That's a two to four year process depending on where you are, so there's a big tail on it. So, to kind of...

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, bi versus 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 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 be completed, but just a comment on how inorganic and organic elements of your growth and storage kind of play together. Thank you.

Joe Shoen: As Joe.

Joe Shoen: When we're doing that.

Joe Shoen: An entire new ground up.

Joe Shoen: 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. The U-Haul is available at www.U-Haul.com, and those

Joe Shoen: So to kind of.

Joe Shoen: It follows a trend line pretty much and 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 those. Most of those deals close pretty quick. Some of those things take a year, but most of them, 90 or 120 days from, you know, first look to being running the site. So I think you could see more volatility in that if that answers your question.

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

Speaker Change: Buying existing storage like you said it kind of comes and goes we don't have a target that we wanted to get X amount of it I think it's very much opportunistic.

Speaker Change: And.

Speaker Change: And those.

Joe Shoen: Most of those deals close pretty quick. Some of those things take a year, but most of them take 90 or 120 days, from, you know, first look to being running the site, so. I think you could see more volatility in that area. Okay, no, but 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, and we have to implement more ways, you know, to satisfy the customer.

Speaker Change: Most of those deals close pretty quick some of those things take a year, but most of them.

Speaker Change: 90, or 120 day.

Speaker Change: From.

Speaker Change: First look too.

Speaker Change: Being running this site so.

Speaker Change: You could see more volatility of that that answers your question.

Joe Schoen: This is Joe. And we're doing the entire new ground up. That's a two to four year process, depending where you are. So there's a big tail on that. So to kind of. It follows a trend line pretty much and 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.

David Silver: Okay, no, 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, 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 the mimicry you cited, and then, you know, what are the last one or two or three differentiating moves that you've made to kind of counter the moves by your competition?

Speaker Change: Okay. No. That's helpful and then maybe Joe just to stick with you.

Joe Shoen: Reading in the press release, the comment that you said the.

Joe Shoen: Competitors continue to mimic our customer service.

Joe Shoen: 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 to satisfy the customer.

Joe Shoen: Could you just call out if you wouldn't mind can you call out one or two of the mimic mimicry examples of the mimicry you sited.

Joe Schoen: 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 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, I was 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.

Speaker Change: Then what are the last one or two or three.

Speaker Change: Differentiating moves that you've made to kind of counter counter.

Speaker Change: The moves by your competition. Thank you.

Speaker Change: Sure.

Joe Shoen: 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. Almost even individual investors have figured that out, and they just mimic 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.

Joe Shoen: Thank you, and not a very obvious physical art. [inaudible] All our competitors now have windows with doors. That, of course, was our invasion; almost individual investors have figured that out now, and they just individual door alarms, and the strongest in the business for at least 10 years, and that gap is closing. There are some new technologies out there too that we have chosen not yet to implement. So I'm not quite sure where the individual door alarm is, as far as customer service is really concerned.

Speaker Change: Very odd physically obvious one youll see it.

Speaker Change: All of our competitors now put in.

Speaker Change: Windows with doors visible.

Speaker Change: That of course was our innovation.

Speaker Change: Have the competitors.

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

Speaker Change: Just mimic us.

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

Speaker Change: At least 10 years.

Joe Schoen: Could you just call out, if you wouldn't mind, can 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.

Speaker Change: The gap is closing.

Speaker Change: And there's some new technologies out there too that we have chosen not yet to implement.

Joe Shoen: And so I'm not quite sure where the individual door alarms are headed as far as customer service is really headed. I think we've done a tremendous amount on unattended move in or move out. You can call it whatever you want to call it, but giving the customer the ability to self-move-in or self-move-out is something that I credit very much. George Xpress 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.

Speaker Change: So im not quite sure where the individual door alarms.

Speaker Change: As far as customer services really.

Speaker Change: I think we've done a tremendous amount.

Joe Shoen: We've done a tremendous amount. Unattended, move in or move out, and I call it every one I call it, but giving the customer the ability to. (inaudible) self-move-in or self-move-out.

Speaker Change: Unintended.

Joe Schoen: Thank you. Not a very off physically obvious one you'll see is 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.

Speaker Change: Move in or move out.

Speaker Change: So.

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

Speaker Change: So move in ourselves move out I think that I can.

Joe Shoen: I credit Storage Express very much for really bringing this into focus. Story Express.

Speaker Change: Credit very much.

George: George Express.

Speaker Change: For really bringing this into focus for me and give me that.

George: Storage Express eventually it was acquired by.

Joe Shoen: Firefighter, Extra space, so they, of course, are implementing that across their portfolio. You know, I don't have access to their exact deal, but Well, those are some easy ones. I don't want to tell you what they are. I think I have an edge on it because I just don't want to aggravate it.

Speaker Change: Extra space. So they of course are now.

Speaker Change: Okay.

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.

Speaker Change: Implementing that across our portfolio.

Speaker Change: Don't have privy to their exact deal, but I can kind of see what they're doing.

Speaker Change: So those are some easy ones I don't want to tell you what I think I've got a hedge on it because it just aggravate models situation.

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 whatever you want to call it, but giving the customer the ability to self move in or self move out. I think that I create a very much. Dorge express. For really bringing this into focus for me and giving that to me and story, express eventually was acquired by.

David Silver: No problem. No, I appreciate that. And then maybe just this would be my last one.

Joe Shoen: No problem. No, I appreciate that. 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 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 of the overall market, you know, I think you indicated both in town and one way, we're up.

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 called out for the first time in a number of quarters. When I look at those numbers and I think of the overall market, 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?

Speaker Change: When you break out your revenue revenues, Alright, I guess product line.

Speaker Change: Self moving equipment revenues rental revenues are up year over year as you as you called out for the first time and then some.

Speaker Change: A number of quarters.

Speaker Change: When I look at those numbers and I think of the overall market.

Speaker Change: I think you indicated both in town and one way we're up.

Joe Shoen: 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 a 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.

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 sides and, you know, just given your positioning on the one way, the one way moving. 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 market share gains, static, etc. Thank you. You're welcome.

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

Joe Schoen: Extra space 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 kind of see what they're doing. Hello, those are some easy ones.

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

Speaker Change: Yes, I will 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.

David Silver: And then maybe just this would be my last one. But, um, 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 the overall market, you know, I think you indicated both in town and one way we're up.

Speaker Change: Side since you have just given your positioning on one way.

Speaker Change: The one way moving.

Joe Shoen: 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. We, of course, we have a- but there is no market share information. Curiously, what's happened is you see more movement between people who rent equipment, people. Say Call, Use Owned and Borrowed.

Speaker Change: Side of things. So if you could just comment on maybe the relationship between the two.

Speaker Change: Change in your self moving equipment rental revenues year over year and relative.

Speaker Change: Relative to the overall market share gains static et cetera. Thank you.

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 first thing.

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 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, sides and, you know, just given 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.

Speaker Change: We.

Speaker Change: Of course, we have opinions.

Joe Shoen: But there is no market share information. And curiously, what happens is you see more movement between people who rent equipment and people who, we'll say, use owned and borrowed equipment. And there are a tremendous number 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. 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?

Speaker Change: There are there is no market share.

Speaker Change: Formation.

Speaker Change: Obviously, what's happened is you'll see more.

Speaker Change: Movement between people, who rented equipment and people who.

Speaker Change: We'll say coal use one to borrow or equivalent.

Joe Shoen: There are a tremendous number of people who basically move from the back seat of their car or a truck they borrowed from work or, God forbid, a horse trailer. I see it every week. We, I think, are gaining, for the last 12 months, a better placement of our product. Relative to the Consumer, and Jason's Auxiliary Materials, posted up on the website, talks about, but percent of the population there are least how many miles.

Speaker Change: And there is.

Speaker Change: A tremendous amount of people, who basically move in the backseat of their car or truck they borrowed for work or God forbid a horse trailer I see it every week.

Speaker Change: Sure.

Speaker Change: We I think our gains.

Speaker Change: For the last 12 months.

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

Speaker Change: Relative to the consumer and adjacent Exhilarate materials that he.

Speaker Change: Posted up on our website.

Joe Schoen: 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 information and curiously what's what happened is to 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, a truck they borrowed from work or God forbid a horse trailer, I see it every week.

Speaker Change: Talks about.

Speaker Change: What percent of the population.

Speaker Change: Miles from.

Speaker Change: Okay.

Joe Shoen: We're, we're, we. When he's speaking about 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 that we've made progress there. And so we probably didn't take it from anybody other than our own and borrowed equipment. In other words, I'm not so sure that... Anybody who's a name brand saw no 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.

Joe Shoen: [inaudible] We're, we're, we. When he's speaking about 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 that we've made progress there. So we probably didn't take it from anybody other than. Owned and Borrowed Equipment.

Speaker Change: Were we.

Speaker Change: And he is speaking locations and it becomes individual pieces of equipment. So it gets very granular.

Speaker Change: Think that we've made some progress there's no question in my mind, we've made progress there and so we probably didnt take it from anybody other than owned and borrowed equipment in other words.

Joe Shoen: In other words, I'm not so sure that anybody who's a name brand saw any decline, but we expanded it. Our share of the total market would not make you at the expense of... another competitor, maybe at the expense of. Owned and Borrowed Equipment. Very good. I appreciate all the color.

Speaker Change: I'm not so sure that.

Speaker Change: Yes.

Speaker Change: Anybody who is our main brand.

Speaker Change: Any decline.

Joe Schoen: 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 are we 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.

Speaker Change: But we expanded.

Speaker Change: Our share of the total market.

Speaker Change: Not at the expense of.

Speaker Change: Another competitor may be at the expense so.

Speaker Change: Owned and borrowed equivalent.

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

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

Speaker Change: Okay.

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

Operator: Thank you. Our next question comes from Jamie Wiland with Wiland Management. Hi fellas.

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

Jamie Wiland: 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 how much of a hindrance it is from those units that have not yet matured.

Jamie Wiland: 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, Phil I applaud the true long term, adding the self storage units.

Speaker Change: Which is going to pay off royalty over time, but as you mentioned it in the short term it takes.

Joe Schoen: 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 maybe at the expense of another competitor, maybe at the expense of owned and borrowed equipment.

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

Speaker Change: Let's say on average a three year period for those things.

Speaker Change: Not to be.

Speaker Change: A hindrance to the income statement I'm wondering if you could quantify.

Speaker Change: How much of a hindrance.

Joe Shoen: And 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. 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: It is from those units that have not yet matured.

Jamie Wiland: And 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 state.

Speaker Change: And that would be great to see that on a quarterly basis. So we could see if there are declining I mean, I can't imagine that youre willing to add.

Speaker Change: Much much greater numbers annually, then than you have been but I would love to see what that number is how does it impact impacts the income statement.

Joe Shoen: Well, this is Joe. I feel a little bit like the insurance company wants to have a device that knows if I'm speeding or not. 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... I've been effective at repositioning us over the last 24 to 30 months to get into some sub-markets that I think I can reliably fill additional rooms in. So, not to, but... Adding a tremendous amount of, you know, rooms to it. Downtown L.A.

Speaker Change: Well this is Joe I feel a little bit. This is like the insurance company wants to have a device those are speeding or not.

Operator: Thank you.

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.

Speaker Change: Okay.

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. 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 sub-markets that I think I can reliably fill additional rooms. So, not to, but... Adding a tremendous amount of, you know, rooms in Downtown L.A.

Speaker Change: I appreciate youre more on my side that the insurance company is.

Speaker Change: <unk>.

Speaker Change: It's not.

Joe Schoen: 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 inference 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. 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.

Speaker Change: We don't have that calculation or make that calculation was Jason doesn't it doesn't tell me.

Speaker Change: Okay. So.

Speaker Change: I'm very aware of it.

Speaker Change: Yeah.

Speaker Change: <unk> been trying to reposition the last.

Speaker Change: Since I have been effective at repositioning us over the last 24 to 30 months.

Speaker Change: To get into some submarkets.

Speaker Change: So I think I can.

Speaker Change: Yeah.

Speaker Change: Reliably fill additional rooms.

Speaker Change: So.

Speaker Change: Two two.

Speaker Change: Yes.

Speaker Change: Adding a tremendous more and more.

Jason Berg: Well, this is Joe, I feel a little bit, this is like the insurance company wants to have a device known for speeding or not. I appreciate you, you're 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 tell me. Okay, so I'm very aware of it. I've been trying to reposition the last, well, 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.

Speaker Change: Rooms and.

Joe Shoen: I'm not sure it's really in my best interest or the......won't 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 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, and that that trend, I'm hoping, will continue the way we're doing this. I think it's going to continue.

Speaker Change: Downtown La I'm not sure it's really in my best interest or the the.

Speaker Change: The company's best interest to that while we're adding a little bit that's not really the thrust. We're looking for other markets that we think are.

Joe Shoen: I'm not sure if it is really in my best interest or the company's best interest. Well, we're adding a little bit. That's not really the thrust. We're looking for other markets that we think are, want to allow us a little bit better... Costa Banage, have a little bit. Negasik, Pastor, 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 twenty-eight, and that that trend, I'm hoping, will continue that way. Doing this, I think it's going to continue

Speaker Change: One allow us a little bit better.

Speaker Change: Cost advantage to have a little bit.

Speaker Change: I guess, a cost advantage, where we've really.

Speaker Change: And you can't see it and I don't know I haven't asked Jason to this question.

Jason Berg: So not to, but adding a tremendous more, you know, rooms in downtown LA, 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 cost advantage. Where we've really, and you can't see it, and I don't know, I haven't asked Jason this question for you if he wants to.

Jason: If he wants to.

Jason: I think our newest projects.

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

Jason: Our <unk>.

Jason: And that.

Speaker Change: That trend.

Speaker Change: We will continue that way worse doing this I think it's going to continue.

Joe Shoen: And so, and I think that might be my slowness, is more the difference with Jason. 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%. 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... I will try.

Joe Shoen: And so, and I think that my and LoNA's problem is more in the difference with Jason. I don't remember the number, but we're down like one and a half percent in the same store and occupancy. That's a lot of rooms at the end.

Speaker Change: So and I think that might be.

Speaker Change: Hi.

Speaker Change: <unk>.

Jason: Is more in the difference, which Jason I don't remember the number but were down like one 5% and same store.

Speaker Change: And occupancy.

Speaker Change: That's a lot of rooms at the end of the day.

Joe Shoen: 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 mathematical equation, Jamie, on that.

Speaker Change: Thats like 900 locations, all being down 1% it so there's a bigger drag there.

Speaker Change: There is an equal drag there to the drag of new construction in my judgment, although I do not have.

Jason Berg: 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 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 my decline of my slowness is more in the difference which Jason, I don't remember the number of cups, but we're down like one and a half percent in same store in occupancy.

Speaker Change: A mathematical equation Jamie on that.

Joe Shoen: 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. I will. Would you still say it takes about three years for new units to start to be contributing? Yeah, I think that's Jason. Do you want to speak?

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

Speaker Change: And the speed at which I put in new units.

Speaker Change: Kind of.

Speaker Change: Thanks.

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

Speaker Change: Would you still say it takes about three years.

Speaker Change: For new units to start to be contributing.

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

Jason: I think thats Jason.

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 In 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.

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.

Speaker Change: Yes.

Speaker Change: It's still trending that way to it increased during COVID-19, we picked up 10% to 15 points of occupancy per year. During Covid, we're now kind of back to normal.

Jason Berg: That's a lot of rooms at the end of the day. That's like 900 locations all being down one percent. So there's a bigger drag there, I don't know if I said 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.

Speaker Change: Projects that launched the last 12 months.

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've been a drag on the return on equity and assets. You're certainly seeing that effect there.

Jason Berg: In 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. And we're kind of back to where we would expect to be at the end. 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've been a drag on the return on equity and assets. You're certainly seeing that defect there.

Speaker Change: The first three quarters of those projects occupancy was lagging from our historical average then it seemed to pick up in the last quarter, which would point to some of it is just management.

Speaker Change: On that and we're kind of back to where we would expect to be at the end of <unk>.

Speaker Change: <unk> of 12 months.

Speaker Change: On your overall question.

Speaker Change: My sense of it is is that.

Jason Berg: That's kind of what I want. 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 knew your 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 of 12 months.

Speaker Change: The new projects are not necessarily.

Speaker Change: A year over year drag on the operating margin, but certainly it's been a drag on the return on equity and assets.

Speaker Change: Certainly seeing that the effect there.

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

Speaker Change: Okay. Thank you very much appreciate it.

Speaker Change: Yeah.

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

Operator: Okay. Thank you, fellas. I appreciate it. We'll go next to Stephen Farrell with Oppenheimer. Please go ahead.

Stephen <unk>: We will go next to Stephen <unk> with Oppenheimer. Please go ahead.

Stephen Farrell: Morning. Operating expenses were up about $35 million year over year. How much of that is from growing the business, having more locations, and 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 that's not a significant part of. The new locations are not significant.

Stephen 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?

Speaker Change: Morning.

Stephen <unk>: 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: 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 it.

Jason Berg: 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 I've been a drag on the return on equity and assets. You've certainly seen that defect there.

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

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

Jason Berg: The new locations are not significant.

Speaker Change: The new locations that are not significant.

Joe Shoen: 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.

Jason Berg: 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 at U-Haul. Wages are up, and we're not up enough. We need to be up more on wages. It's a very competitive marketplace for quality people. So There 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.

Speaker Change: No I would say that.

Speaker Change: I'll try to find the number here for the call is out.

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

Speaker Change: In order to verify that but.

Speaker Change: It wasn't enough to put.

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

Speaker Change: Much downward pressure on the margin I would say that.

Stephen Farrell: Good 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? 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.

Joe Shoen: Okay, and what we're facing, let me help you on this. Everything's going up. Utilities are up. And they're getting whacked with property taxes.

Speaker Change: Okay and.

Speaker Change: Let me let me help you on this that everything's lining up utilities are up you'll get whacked with property taxes.

Joe Shoen: We need to be up more on 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 them. In other words, costs went up, but... Nothing happened in, uh..., and there was no value increase to the customer.

Speaker Change: Wages are up and were not up enough, we need to be up more in wages, it's very competitive marketplace for quality people.

Speaker Change: No.

Speaker Change: There is 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 theyre not seeing that as a big benefit to them in other words costs went up but.

Joe Shoen: 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 nothing happened in, uh... And there was no value increase to the customer.

Speaker Change: Nothing happened in.

Speaker Change: And there was no value increase to the customer so.

Stephen Farrell: I'd say that. Okay, and let me help. Every day I got 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 very competitive marketplace for quality people. There's a lot of upward pressure on those expense lines. Of course, the challenge is to try to figure out how to configure things so the customer is willing to accept those increased expenses.

Joe Shoen: So, we have plenty of, you know, we have something like 33,000 employees. We've got 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 bike.

Joe Shoen: So, we have plenty of, you know; we have something like 33,000 employees. We've got 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, but it's... You know, we've squeezed a lot of the waste out of the deal so far, so it's not just... Steve. I'm going to start with you, Steve.

Speaker Change: We have plenty of.

Speaker Change: Something like 33000 employees, we got people all over the country.

Speaker Change: Doing work work.

Speaker Change: It's been a battle and we're to continuing battle to try to make them more productive.

Speaker Change: They simply must be paid.

Speaker Change: They are in this pinch there are no device.

Joe Shoen: 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. You know, we've squeezed a lot of the waste out of the deal so far, so there's not... There's no big breakthrough going to come around the corner as far as I'm concerned. 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.

Speaker Change: So we have to try to do that and that goes to some of it is.

Speaker Change: Yeah.

Speaker Change: Streamlining operations.

Stephen Farrell: 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 that was no value increased to the customer. 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 continuing battle to try to make them more productive because they simply must be paid more because they're in this pinch.

Speaker Change: I am very hard focused on that but it's.

Speaker Change: We have squeezed a lot of the waste out of the deal so far so it's not just.

Speaker Change: There is no big breakthrough going to come around the corner as far as I can see.

Joe Shoen: 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 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: That although we're pushing on all fronts on that to try to do it I was in a.

Joe Shoen: So finally, their employee had to come around from the back and come up to the kiosk and do it for me. Now, 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, 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 the more productive location? We're in that squeeze, and it's going to continue for some time.

Joe Shoen: And 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. So finally, their employee had to come around from the back and come up to the kiosk and do it for me. Now, I'm at least average intelligence on these, you know, fast food deals, but there they were trying to make it work better.

Speaker Change: When these the other day.

Speaker Change: And they would not take way 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 Couldnt figure the dam kiosk out. So finally their personnel come around from the back and come up to the kiosk and do it for me.

Speaker Change: At least average intelligence on these.

Stephen Farrell: They're in a vice. We have to try to do that. That goes to some of it is streamlining operations. I'm very hard focused on that, but we've squeezed a lot of the waste out of the deal so far. 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 of 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.

Speaker Change: Fast food deals, but they're they were trying to make it work better in fact, they went backwards and spent a ton of data to go backwards.

Joe Shoen: 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 to more productive locations?

Speaker Change: This is I think we're not unique in that I think youre seeing that all over.

Speaker Change: <unk>.

Speaker Change: People who have.

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

Stephen Farrell: 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 that come around from the back can come up to the kiosk and do it for me. Not at least average intelligence on these 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 back.

Speaker Change: How can you optimize that situation or get the more productive locations were in that squeeze and is going to continue for some time I just think thats a fact.

Jason Berg: 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 that. We will get it. But there's not some magic thing around the corner or, you know..., that truck that cleans itself, or something of that nature, storage rooms that don't have maintenance 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, going on into the future, and that just costs more money.

Jason Berg: I just think that's a fact, 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, 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.

Speaker Change: To the extent that.

Speaker Change: You.

Speaker Change: Need assurance that we get that we do get it.

Speaker Change: But there is not some magic thing around the corner.

Speaker Change: A truck that cleans itself or something of that nature or storage rooms that don't have to be.

Speaker Change: Maintenance or trucks that don't have to be maintenance Theres no.

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

Stephen Farrell: I think we're not unique in that. 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, a truck that cleans itself or 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: Going on into the future and that just.

Speaker Change: More money today.

Stephen Farrell: I just checked, and 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 expense, but that gives you a flavor.

Jason Berg: I just checked, and 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 expense, but that gives you a flavor.

Jason: Stephen This is Jason.

Speaker Change: I just checked in locations that we had this first quarter that we didn't have.

Stephen: First quarter of last year accounted for a little more than $2 million of additional operator, but that gives you a flavor.

Stephen Farrell: 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 probably be somewhere in between there.

Speaker Change: That does thank you.

Jason Berg: 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: And just to clarify the comments on your fleets.

Speaker Change: You said it would be flat for the rest of the year is that from the.

Speaker Change: June 30 number or March.

Jason Berg: It'll probably be somewhere in between there, and every time I make a projection or 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 2,000 over where we were in March or...

Speaker Change: Hi.

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

Jason Berg: And every time I make a projection or prognosis on the 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 2,000 over where we were in March or below. And on 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?

Stephen Farrell: There's no, we're going to be changing oil and changing tires at the speed of light. I'm going on in the future and that just costs more money to that. 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 package of flavor. That does. Thank you. And just to clarify the comments on your fleet says, you said it would be flat for the rest of the year.

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

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

Speaker Change: Sure.

Speaker Change: We're below that.

Joe Shoen: And on 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.

Speaker Change: 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.

Speaker Change: Is that something that is still in the works or it could happen.

Joe Shoen: 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 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, went in 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 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 gonna have that persist at least through December I think that we're going to get just a wee bit more than we had planned.

Joe Shoen: This is Joe. We did that as part of our fleet. When you look at it on a model basis, we did that.

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

Stephen Farrell: Is that from the June 30 number or March? 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 where we're right. So we could be plus 2000 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 4,000 trucks.

Joe Shoen: And then we had the opportunity to purchase a few more trucks that became available. As I have indicated before, we've basically done an allocation of 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, went in 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 U-Haul trucks instead of motorhome chassis.

Speaker Change: We have indicated before we basically been on allocation on other trucks.

Speaker Change: And the market is softening just a tiny bit so the oes came back with some more capacity okay. Well. It was the motor home guys took a tank with the tank and so they use a very similar truck to what we do so.

Speaker Change: They were able to.

Speaker Change: Change their production line to make U haul trucks instead of motor home chassis.

Joe Shoen: And so we got them. So there was a little opportunism there. And we're going to have that persist at least through December, I think, meaning we're going to get just a wee bit more than we had planned. Ordinarily I would say ordinarily, but in the 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, they trigger them to the day.

Speaker Change: And so we got on so there was a little opportunities in 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.

Stephen Farrell: And that would put it kind of significantly lower from where we are now. Is that something that is still in the works or it could happen? 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. I have indicated before we've basically done an allocation on other trucks.

Speaker Change: And then we had planned Florida narrowly.

Joe Shoen: Ordinarily, I'm going to say ordinarily, but in the past decades, we could tell you 10 months from now what we're going to produce damn near to the day, and the automakers have their supply lines. Basically, they trigger them to the day.

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

Speaker Change: Automakers have there.

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. 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.

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. They no longer have that tight of a supply chain, and I don't know all their problems.

Speaker Change: Supply lines.

Speaker Change: Basically the trigger them to the day.

Speaker Change: So confused now at any given point in time.

Speaker Change: There's 20 or 30 entire missing trucks.

Stephen Farrell: 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 with the tank. And so they used 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.

Speaker Change: Listen the OE.

Speaker Change: God knows where the trucks are.

Speaker Change: <unk>.

Speaker Change: That supply chain is incredibly complex.

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

Stephen Farrell: 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 damn near to the day. And the automakers had their supply lines. So it's basically the trigger of the day. It's so confused now at any given point in time.

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'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 affects the fleet more than anything else is the rate at which you sell.

Speaker Change: That tight of a supply chain and I don't know all their problems I'm sure. They are working very hard.

Joe Shoen: 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 affects the fleet more than anything else is the rate at which you sell. You see, so. We have a bunch of them. Thanks, guys.

Speaker Change: That impacts us in the when you look at the total fees. So yes, we did drop probably 4000 trucks.

Speaker Change: On the small end of the fleet.

Speaker Change: And then we've picked up a few thousand trucks on the big into the fleet and the other one you have to look at because various a fleet more than anything else is the rate at which you sell.

Stephen Farrell: 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 can tell you what they were going to build in September to the day and be highly accurate.

Joe Shoen: Silver, Jason Berg, Edward Shoen, Steven Ralston, U-Haul. We have a bunch of U-Hauls, with the 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. Yeah, but so there's... It's not a, uh..., and all 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, and so that reflects itself. Of course, it kind of trickles down through.

Speaker Change: You see so.

Speaker Change: We have a bunch of it.

Speaker Change: And what's not.

Speaker Change: Starts and fits and bringing new equipment in and then of course, we we think we're planning when we're going to sell it but.

Speaker Change: We don't always see.

Speaker Change: So as well as we had planned it so there is.

Joe Shoen: U-Haul, It's, there's not a, uh.., a four-alarm fire going, but there's some resistance in the resale market. U-Haul, The consumer is pushing on the new truck pricing, and I think that's common knowledge. The Wall Street Journal reports that, and so that reflects itself. Of course, it kind of trickles down through. We use truck pricing, so there's and demand. Again, in the middle of COVID, hell. We said we wanted to sell the truck, but we didn't have a line of people wanting to buy it. Well, that's not the case today. Now, we're still selling the trucks, and we keep more or less on schedule, but not... not as tight as we would like.

Speaker Change: There's not a.

Stephen Farrell: 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. 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.

Speaker Change: For long require growing but theres some resistance in the resale market.

Speaker Change: Oh, 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 Thats common knowledge Wall Street Journal reports that and.

Speaker Change: And so that reflects itself of course, it kind of trickles down through.

Joe Shoen: On-camera video of the U-Haul, Jason Berg, Edward Shoen, Steven Ralston, U-Haul, Keegan Carl, Sebastien Reyes, Steven Ralston, U-Haul, Keegan Carl, Sebastien Reyes, Stephen Farrell, James Wilen, Keegan Carl, Sebastien Reyes, Stephen Farrell, James Wilen, Keegan Carl, and Demand. Again We said we wanted to sell the truck, but we didn't have a line of people wanting to buy it. Well, that's not the case today.

Speaker Change: Used truck pricing so there is.

Speaker Change: And demand again in the middle of Covid.

Stephen Farrell: 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. And I think it's because the consumer is pushing on the new truck pricing. And I think that's common knowledge.

Speaker Change: We've said we want to sell the trucks that we do have a line of people buy it was not the case today now we're still selling the trucks, we're keeping more or less on program, but not.

Jason Berg: Now, we're still selling the trucks, more or less on program, but not as tight as we would like. 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, just to operate the business going forward? 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.

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

Speaker Change: Okay.

Jason Berg: And you touched on potential capital raises during the quarter. 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.

Speaker Change: How big would that be and whats sort of your optimal level for cash and just to operate the business going forward.

Jason Berg: Sure, so it'd be in 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, I've been allowed to keep enough cash to cover a year of debt maturities, excluding the fleet revolvers. But we're well above that now. But I mentioned it earlier in the call. In the last year, I think we've deployed.

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

Speaker Change: $500 million.

Speaker Change: Optimal level of cash.

Stephen Farrell: Wall Street Journal reports that. And so that reflects itself. Of course, it kind of trickles down through. Through use truck pricing. So there's. And demand. Again, in the middle of COVID hell. We said we want to sell the truck that we got to 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.

Jason Berg: Our floor historically has been that I've been allowed to keep enough cash to cover a year of debt maturities, excluding the fleet revolvers. But we're well above that now. But I mentioned it earlier in the call, in the last year, I think we've deployed. Our net cash balances have decreased 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: Okay.

Speaker Change: It kind of changes are floor historically has been.

Speaker Change: I have been allowed to keep enough cash to cover a year of debt maturities.

Speaker Change: 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 have deployed.

Stephen Farrell: 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 $1 billion three.

Stephen Farrell: 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 dollars. Our 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 damage.

Speaker Change: So.

Speaker Change: I'm, just trying to prep that because we still have.

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

Speaker Change: So.

Speaker Change: Were certainly higher than what we need to just run the business from day to day, but to maintain the growth rate.

Speaker Change: I'm, having to be a little bit heavy on cash.

Operator: That's all. Thank you very much. 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, Thursday, August 15, at 11am Pacific, 2pm 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.

Jason Berg: That's all. Thank you very much.

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

Operator: 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, for part...

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.

Stephen Farrell: I'm not sure it's. Excluding the fleet revolvers. Well, we're well above that now. But I 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. George. That's all. Thank you very much. This does conclude today's question and answer period.

Joe Shoen: Well, thank you 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 and 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.

Speaker Change: Thanks, everyone for participating today as a reminder, one week from today on Thursday August 15th at 11, a M Pacific two P M. Eastern will host our 18th annual virtual analyst and Investor Day.

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

Speaker Change: <unk> can sign in had investors dot <unk> dot com.

Speaker Change: <unk> for the Q&A portion can be prior to the meeting to IR at <unk> Dot com or submitted live during the event. We look forward to speaking with you next week. Thank you.

Operator: I look forward to speaking with you next week. Thank you. 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.

Operator: ............ David Silver, David Silver, Thanks for watching! Subscribe! Like! Comment! Share! David SIlver, James Wilen, Keegan Carl, David SIlver, James Wilen, Keegan Carl, David SIlver, James Wilen, Keegan Carl, [inaudible] Thanks for watching!

Speaker Change: Okay.

Speaker Change: [noise].

Operator: I will now turn the program back over to management for any additional or closing remarks. 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, participants can sign in at investors.uhall.com. Questions for the Q&A portion can be sent prior to the meeting to IR at uhall.com or submitted live during the event. Look forward to speaking with you next week. Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time. Thank you very much.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.