UHAL - Earnings call 3 2024 | U-Haul Holding Company

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Laura, and I will be your conference operator today. At this time, I would like to welcome everyone to the U-Haul Holding Company Third Quarter Fiscal 2024 Investor Conference Call. [Operator Instructions]. Mr. begin may you Reyes, your conference. Sebastian

Sebastien Reyes

and to the morning, Investor thank Quarter you Welcome today. Call. us joining U-Haul XXXX for Fiscal Good Holding Third Company

Act the remind begin, statements limitation, may expenses, growth that like constitute we general revenue, this to and our Before as statements of certain including, I'd regarding the the Securities of of Section within XXA of of amended. the of statements income meaning as XXE without of forward-looking during XXXX of amended XXXX the Securities Section safe call, Exchange harbor everyone provisions business, and Act

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

uncertainties and and U.S. company's affect XXXX, to Holding December call U-Haul over and that which Form to please filings refer ended on For may future the now Company. company's results, for file a Shoen, business Securities of public SEC turn Chairman XX-Q XX, Joe the Exchange is the Commission. I'll and of the operating quarter discussion the risks with

Edward Shoen

Well, have a sharing positive thank for in us joining either signs for consumer rentals. been the demand or few report. quarterly storage you truck for our all There again

demand. grow storage to to of the be simply but total continues U-Box and too Our market of indicator considered is it small moving part as an

through vehicle progress manufacturers some the completed will will making beginning truck modest to several This backfilling work fleet the in to trucks. and basically someone assuming willingness its take the in build by COVID. are build of We since created fleet, product voids our way years sufficient

in the right investment market. Rising self-storage, over costs to customers. buy and years period U-Haul Everybody opinion going their managed pressure continue build locations own for has are on our what's a a of to I and believe the of continue the good company. We

legitimate future. costs unable try them is try rather period into hedge to all than often an to them. the future to predict to uncertain to are My strategy absorb present We accurately postpone costs or into

solid. Oxford Board Life Insurance the Our the years and Berg for numbers. leadership remain will the after call on Directors. I'll subsidiaries retiring pass Haydukovich, Mark XX Chairman now are of President analysis company. insurance of Mark for Group be some quarter of this to this will Jason of our the

Jason Berg

year. to we Yesterday, for $X.XX Joe. the quarter this to Thanks, This third quarter $X.XX share nonvoting with results, decline. compared per X% to nonvoting of had $XXX of last same last compared earnings earnings per share last Beginning is which million third of quarter revenue $XX compared equipment reported to translates million share year. per million rental quarter in of a a the the about quarter third we $XX decrease, year,

a billion revenue, that. back Over months, in a $XXX portion we've the of last XX U-Move experienced million we X of the giving the increases $X.X decrease had quarters before

were quarter a a are so ended the or today of positive you sense to to a down which note, sorry, X on for give increased moves. On month XXXX. the we've of we just over third equipment third a year. first XXXX nearly rental shorter miles That third by the per months Average as revenue the increased of by mileage quarter, ago compounded increased We've year the of our pre-pandemic, We've to tough in transactions for X% X% how of growth period years are the a to much full as years revenues transaction months our momentum million on were bit [ it X results X million. over fact, CapEx in better quarter, XX, X%. over million, $XXX basis ago undoubtedly -- December, in to decrease X last I'm X%. same compared lost is Unfortunately, results net quarter January customers in far last increase whereas little a billion. ] were $X.XXX by on the around affected From transactions our for a continued we million expenditures decrease revenue equipment $XXX approximately using $XXX while December fiscal To had call compared $XXX we month. our new And quarter weather. Capital the those the projection. down still maintained

proceeds sales the additional in net million. of for $XXX as increase million Average equipment from pace our retired have rotation price coming The of retirements teams So up in X,XXX current should X backlog. total per to dent out we year, maybe of proceeds. been that's sales. unit has the months from growth older truck $XX of our are sales here is our pace this a truck the truck increasing just Proceeds been make And taking to steadily equipment. X,XXX declining. At

for rooms, to improvement total quarter. we occupied increased the through year. square the of as For occupied the almost we're year-over-year by average $XX per The self-storage, XX% or revenue X%. progress has per also foot down and up We coming number revenue were foot revenues in able improve million been

time into that's ratio XX%. The all-in press in XX.X%. properties Our year. release same differential put up be XXX it, these the XX,XXX average, during It's call time grouping added occupied we our same-store an the to occupancy quarter in we've same with to seen end points unit third units occupancy of led in moderation our was to inventory. that of of new can the this to count decrease the occupancy basis decline the nearly Over XX,XXX at compared same frame, units last to December that

for year-over-year. new up than are little across customers average entire portfolio a rents less on X% asking the Our

of own estate development the $XX in first X properties Spending U-Box increased. while new million That's last along the decrease $XXX that During properties over invested we've of existing this year. we on warehouse months acquisitions self-storage declined, with development. in a year, million in acquisitions has of investment real has

rentable storage increased over net $XX we just new little expenses and being X the have added and moving actively we Operating square million on. square X million under million for worked and third quarter, quarter. feet feet, the During a

good were with including recur. a cost charges year not about a netted million. First, onetime this the fleet rebate had consider Property also personnel. we we maintenance from $XX quarter I were approximately in would Conversely repair million was down credit of nonrecurring increase recorded and And the a million. accrual the $XX event. expect against up $X news that nature, would included $X large year. card in vendor some to that that last quarter that million also that was the I taxes cost was That Combined

liquidity deploying the we progress of $X.XXX this the with cash We segment still in would begin call. hand our availability to facilities in from that, to like new and XXXX, have Moving remain to existing to made totaled of billion. With -- year back our balances loan I cash cash XX, some portion to and investments regards intend along December as but operator, Storage at Laura, to call our of question-and-answer the conservative

Operator

Instructions]. [Operator

Steven question Our first of from comes Ralston Zacks. from the line

Steven Ralston

what I'll expenses the property And that's you went It's attributed taxes still property it I believe and up million, blip in only line mention in that's And that look the self-moving it with I only saying, up I account economic the previous particular revenues question It it roughly you in earnings last a everything the that environment, saying personnel your caused a I consistent management long looking you're considerably. equipment also $X Good the follows doesn't highest it's Moving something it. maintenance. not margin. is for only increase that I has seems relative do the and me operating the is following the for given level I rate earnings And to and years. And for that, one by you to what have metric with the line mentioned been up pandemic. and is rentals. And that to morning. monitor. quite building the it's on Storage. of X on line, very after top the And expectations. I historical actually start model, It's have to as this be margin of by years. detailed in and premise. so revenues you time, call, except growth and And or expenses taxes those costs, for just said, the have margin XX-Q, at which all X been by divide popped at

inflationary these third operating just me at the accelerating normal. of it's is sort relatively concluding that expenses relative little deeper Because it it's number a And just I'd to increase? expense kind quarter this slowness dive into and like costs. It operating in in like what's some personnel I'm quarter sticks seasonal higher given driving nature. of out fiscal its the others. And this So than a seems of is clean to you

Jason Berg

with Well, that. is I'll start Jason. This

largest first, only and year home personnel We've about the costs. X%. at So of to of been a in been office has our costs, with staffing little more more revenue, a in this there personnel that's decrease coincident function efficient a tried up the decrease headcount is expense, not and become the

year the the this been to business. The of function and growing revenue maintenance That's capacity size down, have the more of so not down. and for is we're compared has personnel a we more the So last just coming repair much. quarter

it's up million were probably you go basis. If years, on $XX back X quarterly to a

higher that's than still what we expect. So would

million the and on the trend then increase, As lagging to normally are little expense see I little utilization this quarter. just equipment, kind down would think with time I been depreciation of about costs you quarter. And in this have a the climb bit in I the repair of more of this expect you of we you're those a associated speaking there see to did recurring new and than maintenance what the both out and over come point a would But fleet put new are and comments say the equipment, them the $XX around.

Steven Ralston

else. The Or in compensation of the in the in is other else order with. is of a expenses, what level -- personnel I is might be guess Yes. cost might the environment something good. this is, X%, and while I'm paying looking the higher just be dealing actually employees quarter pretty environment. that the that it headcount? this you at Considering I everything mean have to you're words,

Jason Berg

That was headcount.

Steven Ralston

headcount. was That

the usual? -- Okay. going up compensation are Are than higher the

Jason Berg

the on classify a It's higher been years I wouldn't several basis. than hour going usual. it up per last

we're for think think I activity. somewhere million the wage on is medical and X rest the million close I to $X months, up $XX benefits to

Steven Ralston

little Well, Okay. question. quarter. had in for all a good concern Thank just about And I you. thank expenses. my all, you answering the

Operator

Keegan line Research. from Carl the of from Wolfe comes Question

Keegan Carl

a you like-for-like start the or I what X, with guess been just I'll have you to asked on think basis, would I prior the compare quarter you if sort rentals does And remove new down of last the think broadly, equipment but you seeing to trying I stores self-moving quarter? improvement? question Are added year-over-year. the sequential any that guess would how more have

Edward Shoen

less. that number. they way is, or But know And were same-store the new can't -- if on or I don't think say additive. additive. phrase a That's probably Jason to I able they as -- so I half generated as get. about X% think a kind sales stores probably the cannibalize hard of revenue were be another they number did very would was question you'd that you has a get to might you

give on course, can't going I that's number But of be hard concerned something, of a of. be my to So you but that. to kind that's --

also As U-Haul what dealer. via you go a to the we call we customer know,

course, the little And than did concern something more encounters we watch. where a revenue of so a total of then product business trying the source did they And is ago. and stores of a to customer is, the revenue year the that balance bit

dealer a into So sense, business. they could in cannibalized you a say little bit

know, percent to if them what hadn't much. stripped out you... stores had -- Maybe I the might we I have do So Jason, seen think don't we done maybe. and a that not

Jason Berg

entire it been and a for study do what hasn't a in. this we up what done to happens new the have coming see we on ends up that put after is company historically now location years, the couple That found we dealers. has of we effect of couple when location a a of years. that market put company But Every

the is that to -- And big we've shouldn't a has seen response gone where a -- caught a I've It's overall negative effect. always It's generalized doesn't got haven't my everyone market location I company market it up. So ever at. looked have it always down.

Keegan Carl

we -- January. also in related. self-moving That's just February, any it I is guess curious, improvements? specifically guess really but it early you're this this month get guess, trend I to as that, to you just gears, helpful. maybe incremental but was I mentioned work business that didn't it's have just how I are know on for, of trying portion better throughout I'm seeing through feel easy you I weather a in shifting expecting know quarter? the an

Edward Shoen

Of caused anybody down course. and [indiscernible]. me to as Hope eternal, get business, tells basically, weather who springs be to them the you

had but So happen. slotted every that. on nasty so January. if we that a years, we -- X have Could or slaughtered we had XX I'm that. we're But in those another relying hopeful in one or you run of -- another son California think February, really We could decent February, February? a X of either far, days get I had constantly. of did pretty got not some get I'm gun, of February, weather. But a again, in we months, first still slaughtered just It January of

turns People, that the explanation a that It's So Jason to look they say, we've of them force drive now have words, I a In this person fewer distances. to a over XX there's we've -- driving but years. other it I little happening. with uncomfortable are competitive right commented, consumers' drive to of to until repeat expect kind as People more seen I a economic not maybe over seen heads bit little malaise doesn't repeat. And positive our like weather. shorter that their there's totally. But anything some and miles, tend certainty, miles. other in truck more market wrong the of are than negative view, an kind don't for don't and -- kind there's

rentals are kind We competitors. Now logical. us move of people losing don't We move just to don't We kind I look a just that little still of things. They distant don't that to -- move want we're see get at And want but married, don't to that happening. they'll got think long when see just they it's way, don't hesitant. to far. those a They because city. they they

they as about these -- more events continue when all quite their drive circumstance. these that things have but business, they as were So they more been they life positive on, adventurous they're might felt not just

Jason Berg

for could I be closer might And definitions probably I an say, this a is us, accounting -- slaughter not X% that's think X% Jason. like to, term, people's If just of decrease. very -- or

Keegan Carl

for commentary in that's press the No, really The release, thought Joe. helpful. I actually pretty positive guess the one was specifically beginning. I

what seeing You in seeing you on Maybe product certain growth and into mentioned go then in that more markets lines. you're detail in? and pockets of markets, are improvements this some particular, modest

Edward Shoen

restaurants same short analysis Well, about the tell would I it's thing. red blue business, kind the a state and probably, of long probably you the of think the state, every it, same other as

a wonderful see sees Tennessee just just is. it have, and just goes. reflecting everybody how of And is what up kind where I place We end that, business Health. today and So to we'll it. think well, Tennessee we it take do

know, very push detailed Tennessee, sorting So we -- think Where -- always new you it of And have you level. as tremendous back in opportunities it. you only amount a -- pandemic, get want do the also people seeing don't are there's we is of new basically back have to pockets during and do still a in and like the inborn population moving see not call always the migration. shifting ahead, present around people manager, going at better and these creating of whether country, but we equipment? lot are a this but And some am markets. I outlet? did through themselves we're the places like Where you we don't

running in keep to to And in initial need because with We so or do dealers our we that basis market largely they're that those independent market our business something to the else. adjusting landscaping phases a people.

they operation with area. company we put a a combination go established, as to good that may U-Haul. But and in little we'll And make those communities then more ahead so become start

So we that of just best is last weren't growing I wants hear information other but blue community we than aware our call from I year, what red state, nobody say, maybe local my it's get would to state, that traffic.

offices to traffic And go this the see XXX there try the and country. like to have across trends people We They alert first. going and us they it's well, looks see positive. them say,

great, had aware done about initiative think. don't that have a to us, has we and I'd I that has wants Texas not what say was say, -- us than it's guess, of so you I'm and great. done I other it's if what equipment it. With we the marketing think we and like have catching the to when Florida equipment would distribution. some course, to fire, customer it, I Of do, where important

just the mean So own the doesn't it's because -- the correspondence where is. demand we to equipment

big to moving get of week, have better spot of trying tens get constantly week. in a because we different constantly operation it's to it trucks trying a a thousands that than next this were they we'll have So and target

constantly to you're trying that. So re-optimize

Keegan Carl

topical seeing the stay? sent out? increases know guess gears And Maybe that to here. rate your are industry. are are you rate sending increases big I'm seeing customers just length any of in how in are I shifting storage picture, in you any I curious, average the out change are to change you're storage obviously being reacting

Edward Shoen

just all the increases. say rate I'll

the on increases. rate send That's to continue We going what's industry. not in

is half people. to you your but that. our that so But think we our of they're activity, and because going now, a competitor And to XX% unsettled they everybody price. [indiscernible] know the because we spin. jack to their Well, do industry, you're customer own hard anti-consumer off going it's going now slashing want don't have price half that's great We destructive they're the and We X days XX to more. store, to from consider it head of it's -- view has why

whipsawing So rates.

than change a making You're X%. rate more

your wrong to to have something was explain with original You'd what me why pricing.

With the -- my that's feedback.

And did is so portfolio portfolio. us, what over asking I now whole see the we about the over you'll -- that our doing -- typically, X%, whole rate I think we're

X storage the -- it by So far than was far. is by market tighter years

of -- and to gain energizes to And believe our so kind I that like you're to that's it we Well, comes when to your start up, game. look having knitting. us. believe I

do. what overall for the really so that's And Maybe value, increased by customer hard. we're attempting to pricing. slashing better a -- Offer push not experience value but we with necessarily we

Jason Berg

haven't Keegan, any And stay. Jason. in seen dramatic average the this I shifts is

Keegan Carl

Really utilization the just helpful. we your I'm is guess be me. income And take sheet especially of if at about But down, should I I a rate for curve form another question. then forward the balance curious that, you picture liquidity last of favorable. won't excess how guys this one coming lot you a big think interest on look as of the in have guess cash. the obviously,

on curious at of utilization. heads your where kind cash Just are

Jason Berg

this down, a Well, or year from like, until now. is January Jason. here We've to worked say, close it billion take, give ago, $X

or have that or put back into of and construction far are, either now, say that in about fully I So of acquisition opened that north that additional have phases have self-storage. to getting them we're so assets, opened remaining. we would or all would not billion into reinvested $X.X somewhere cost include close right

So call them I fully realized wouldn't yet.

there. of a quite side. kind there's bit So the financing estate sitting real out on We've going been on

right can raise have you cash quite doing if point do some ability we a to. we to So we're bit at now. the see, not that need as But of

Keegan Carl

Great. That's for it me.

Operator

Jamie comes of Management. Wilen question the from next Our line from Wilen

James Wilen

trying of is let's fleet being are the we But have percentage? units fleet fleet said and that you fleet utilization we're the for increasing one to at, while that of say, I to better mean, with look trucks relatively you've the Joe, the utilization flat. our metrics upgrade always flat you the most size important realize better all transactions the I to why if are raise time. transactions

Edward Shoen

some our deletions what goes because needs goes we the the -- And so in bottom, at come other this words, quite what still really have bottom. all the have It's top and on out out. is to the

on grounding, [indiscernible], happens. different just that doesn't we're big but Jason's it's what to that's kind you -- of because until course, a truck, face Some put just rent pending of better believe sale, a smile

Now same where we've at pickup maybe X,XXX, X,XXX. we fleet know the time, exactly? are Jason, our fleeted you down do

Jason Berg

The up mostly of end pick fleet, X,XXX some down to close -- units. our

Edward Shoen

Yes.

down and trucks the can more It's If most And we X,XXX -- think I dealers go auction. [ you units. almost those readily Most do liquid through pickups, vans we're reset to And respond ]. that's of to. such.

that's And bigger much so a market.

ourselves. trucks The van -- we our -- typically it read

selling on auction -- They do. where pandemic, buyers and faucet day. it's out buyers go turn trucks And and we of we XX buyers [indiscernible] not the clear off whatever kind drabs. dribs since the you of during So with other some a sellers or stopped can kind

XX months, get we slower last So it's the on to coming XX coming that but on, we tried than in expected. to

So I when think utilization, we all believe you Jason, we calculate me, I calculate the correct products. I don't

Jason Berg

in the, those If actually included. aren't it's

Edward Shoen

Right.

Jason Berg

but But down. classified you actually if it's haven't -- if them

Edward Shoen

down. is water Then

I buy yet too it right, be -- license we're -- more sale, trucks, think -- many. too it's but in have I bunch not we So shouldn't rental. sold where you're because they're think still of the but and less that's in And many have this plate, because pending bought a we a -- we or

James Wilen

Right.

figure you a Are the difference Your any forward? be give expenditures you would fleet that moving have inclination repair that maintenance vehicles own maintenance quality a bit. that fleet and will rising the of in any declined not seeing you

Edward Shoen

far We're not along. that

want kid, what's not repair like family, And like basically, a -- that's going happened drive dad, been the trucks. miles. you and a you depreciated, it You you're basically it of now to much that if to We've saw to it of because has our costs like to year. vehicles. mom variable $XXX to million was then XXX X,XXX a with And associated just but the miles, something with the bunch expense of goes for a our maintenance cost. fixed some have pay And another every lot it, new

So Yes, improvement. some we've seen

sure debate extra just X,XXX booked it, I'm can trucks, something about let's number, You the say, let's but that. we like not

probably particular XX,XXX matters in by size. against because X,XXX that's it Well, Okay.

not just number. it's the So total

Now we have to balance sized every for individual truck.

if you have you of same Ordinarily, fleet. -- had buy your truck this his supply happen. year, the a you druthers, But considerations, of just doesn't every and because maintained amount constant

And through so we it that's kind have whole and no goes that trucks -- -- of through fleets smelling its just where we of rat. through. work milage way in It to just have goes middle. go smoothly. a low and us trucks through snake whole kind a mileage trucks of the bunch a doesn't kind of like a It of high bunch And

come depreciation some repair. seeing new that. in should a correlative. I'm we out. quarter It and in trends And as The going will we're not that numbers So see trucks of bring But not The correlate you'll don't exactly. go balance and predict exactly sure. next reduction don't. up I'm then to they

vehicles And us on paying and $X [indiscernible] seeing of $XX claimed you're of was billion for fleet that sales. it earnings billion also Ford

Price XX% tell through and the how sales. by Manager cannot -- come with and with been this. increase on treated General through of rest poorly you on we've price increases. I While fleet Ford They've

this they're companies electric this us, their product. made like they at morning on -- can. But I us a internally their decision the this with to But trucks, So have what analyzed product. against a This just And of really just more a with causing and like is trucks, we're does. isn't electrification banner I hard those to customers vehicle, seek here, When when that's customers. the electrification, and kid drive doing we I and but home, they the what no us, losses that we to to complaints us. a I buy done that's you've solution it both -- mean hitting us And who saw need were what of making not they're car actually I'm in good just And it's need finance, earnings it. is suppliers. going that's another got business. tell it. with that to that's And more all -- have under for about year. in alternative that's them leveraging their they're I financing everything course, I

James Wilen

And little pieces commentary. of X

quarterly with You before. and by shareholders. dividend the we the you're also, way. self-storage we everything self-storage look analysts to glad that seeing are to XX%. an large forward analyst increases overall have people share And that talked I'm love increased we've the you incredibly then to that understand And according some never along to that business there growing I and

but the most to And everybody to relative point? organic Is within start else organic industry, maintains if thing the the creates it significant most difficult at X%, I do a our level U-Haul when you else growth higher growth anyone was at wondering mean also same that has. I upside. at this this is the

Edward Shoen

year, to and I'm we're -- makes I say believe constrained -- that capital. last not it grow sense, by going trying to we're but Without where I was don't everywhere not it

are you're okay? and not to some our money to constrained going execute, happy -- can in-house You Our as ability into of don't -- just as development, be run pour expertise. cost out you can as have can

we're capital in and places a are but day. So we trying we're everywhere on to execute just aren't not many to given that not able because constrained, we expand expanding

somebody and I'm benchmarking a have -- that. I'm I'm trying like don't to I not that Space Extra So saying doing how number against

strategies. We're all in the slightly We marketplace. have We're stuff. all all doing different

of sure them I'm my watching not me. quite to keep something on learn I maybe and sometimes they And learn sometimes by by I watching them. course, that. try something eye of But

So what themselves better I to get situation. in they're doing a understand

James Wilen

quarter, a be feet million constant relatively As square you you number? going to per looking X add is look forward, to that are

Edward Shoen

looking We've yes. like last quarter, this kind If itself Got I'm to built so that filled year at all fill then see okay. that before. the we works personally, and okay, that. It's can this -- we rooms than So over it Again, I'd those are rooms is, thing. that, manage not done store. of well, okay? more to question we a prior thing The have the I by room rented out.

And because math can't to then, [indiscernible] these of course, get we're the providing poorly. -- is the rate go your all rate going projects just --

I all continuously So able to build be rate. should we're And should at we think watching that. I we now. that believe

But Our to something see really being indicates yes, able us build up doing. should in get to the I continue able it environment, that macro we will model be changes us. rate. the that's rate

James Wilen

And top you've grow the pace that as continued Okay. the business And for lastly, growth? line keep U-Box, bottom business. are that to in to how line continue on the with margins you? Has the

Jason Berg

is is had little the some X It's that had a months, Jamie, bounced say transaction increase. declines increases year. And I U-Box really Jason. we've revenue for outperforming back. revenue had this now we we in last last last this that maybe over quarter, would the

but range. So we the that for X% but don't down, it's EBITDA as of I in is number do segment been for reporting to maybe an have here, X% kind that that proxies

than the in a the of sense, organization. little rest done it's that So bit better

Operator

Inman Craig comes line question Partners. Artisan the of Next from from

Craig Inman

year-over-year talking Jason, about, that give of Just some that you're that. extra just Or there's on real catch Is that. $XX this I kind to I quick, cost technically, some million color quarter? didn't comparison? want

Jason Berg

that credit under last little year. this of didn't year million a that was So recur $X a

then It last additional really year didn't this the it should not reduced But that increase an in looks this last come was an if it around it booked year, this remainder that of So to that expenses increase. And expense like comparing year. you're again. wasn't year. quarter we --

Craig Inman

Okay. you. Got

ask going I about, and self-storage to done. that building know just out priority fleet get the get Because the to rotated, was is I was the mean, Okay. that what I

And than was so cost curious I the base. about

what we've in cost just seen normalizing the know some you looking of You the you you would trajectory of X lapping very and stacks last businesses from always base -- revenue over in expect mean, but not had a all that that then how of and excess you're about of places. the changes this versus where how kind period through revenue you in lot I business a I you're certain given just are cost costs, kind of they years and have curious lot now? Are at COVID up the the position. mindful

Edward Shoen

or be area see personnel X for you're a going think X touch years. I to

possibly all that that's bunch add federal of public course, whole of initiatives is, on state to a or at customer know. and that's But that think the get can question with there's in wages of through and I that's the don't maybe level I coming a going to that. be somehow inflate at some massively back policy, determined. earn participate the to And kind value customer we the

bumping But California. if know wages. about of they're why don't are lot the also political, in bumping you food I follow California's press fast fast a through that states -- up. ricochet obviously the been It's there's will states, By my food, but operation

So is very we're fungible. labor

just truth. I the so if can't and okay? start So hamburgers, leave making And they'll stay competitive, me

can't mean, take wage mean Can I York, New salaried be Well, people. first believe -- do you $XX,XXX minimal things, New wages or don't salaried coming that $XX,XXX used but quote down at don't you expect X in it's cities, of hovering And around similar you X right there's through what about this the times think it's with would for right to replete to us wage we've but there's I survivable, have trend I but people. it people. keep been I I to to crystal a these that of don't quite is minimum now. Jason, years. I ball, initiatives for for York for obviously, this minimum salaried of a it, now I a go couple okay? many as I so know. -- swarm heard

So it was irrelevant.

now they're different not cost will And San delivering. quite sense actually going going it Francisco on places and franking in because much it's that affect this carry does. makes There's -- to Maybe but it through. sense as Alabama, make is because to

that's on this that's we're it. inflationary of So to deal just there's pure lot going and legislation, driven going a by with

what we totally the a to get I a human. personnel process call huge And increased We all initiatives, costs. task not is attempt that, enough on initiatives have gains but which instead which outweigh have an made to time, productivity-enhancing to of accomplish

So we're segment. still my it in chasing

be revamp big before. of X of a lot do probably customers on net point-of-sale more quoted will you midst We self-service self-service in the to to We're will effect years orientation, the take whole get basically. our a we've

payroll gotten it new press I have a of think we're this. X a and where return. million, it, you and doing. or we're rent we'll our how and company's would focused a than release the self-dispatched because is everything it quit on The on self amount accomplish recently, done under I XX/X we keep we've been this can somebody find without them had else more Where, kind have be stabilize a that. greater a I can do says called customer for ignorant input of so I all accomplishes reduce equally. before we long everyone, than affects we've we customer can on everybody is technology net -- personnel. the to that put to the our this change we -- or dealers then would thinking increasing the that. personnel go doing we -- and That's put savings truck something customer good It's as f***. We're it if

But So been on chasing that's going time. the all we've it.

it. looking haven't at been We

Craig Inman

Okay.

just Those way So and -- are it to base, is, yet. ongoing take pressures. you're line Joe, but need the thinking action cost of out this where not we is the

Edward Shoen

Yes.

you're range. ranks. want to to the reason we the decimate decimate There's no what So talking to

I tuned bunch, that ratio calls, if a alone the center. Oh last our area that people it Can up to -- will in reservations. it up? and double-digit business own run lose do our the that, and we're we've of you how XX tune You year. bunch expect up in we are ranks. to this tuned call -- to decimate a continuing months? We've over we increases I the going In Can we to see productivity

day, But it's a the at vehicle. really of the end

and have got them comes customers of that, exactly where do it clean really vehicles parking we've are put when to and to a to to. put they You them We damn back, do you're it electronically, okay? tell it really happy lot -- now

we years considerable X we business. have ago. business had a Today, So of amount of X that that

no waiting customer in Every physical line a less time work. get I experienced personnel do and to our they that, experienced

But it. self-storage And could So very again, focused of wish self-move that. we're to think, on balance hasn't chasing I in our ahead, very, the outs on self-move industry or compared group, I on on It self-storage. we're it. customer and We we're do ins the happened, both hard report but not at I say I And and we're amount leading. this. would peer and tremendous would a of ahead and

we Every Now it's who Well, their if the unmanned, that. interest. something, a contactless to we or it the customer get best benefit. but you call of do time don't customer that in get version all considers

we businesses, are self-storage And do-it-yourself. so the and both our in do-it-yourself the self-moves, our

do of most So balance willing customers of effort to are our and reciprocate. we a out. They little bit

Some men ] them, they call with [ a trade. fair that

Craig Inman

before. know sense. -- And this I makes then just I've asked Yes. That

economic more continues weak. the to being household is But are here. the the consumer what a activity, economic Home confidence sales all your consumer big and tied formation. So market obviously indicate housing for just existing data to saying general home all you're transactions driver

Jason Berg

positive should we the And Jason. great historically that, excited correlation, a was of this on to couple reports the closest that not we've confidence, what correlation consumer be indicator seen it's found. it's see Yes, but that should, I a is last based for us. upon

I as of goes, on hurt. far here. can tailwinds I think we're if And think or can't it that can us fronts, those looking it opens a at So in-market hurt us. really help as up, that potential couple

Craig Inman

yes, on moving it finger the a big housing just as down the not that driver clear you -- to not it's works. But starts moves. and Yes. it's up That's can't put so how one-way your

Jason Berg

dynamics We variables so now. happening. have from noise one changing the hard right There's It's coming these much so things home. out of and any of now COVID to work at right many isolate

Craig Inman

Yes.

All it. No, all Okay. appreciate I me. right. that's for

Operator

And from have from our coming Stephen question the ] Oppenheimer. line next Pharell [ of we

Unknown Analyst

morning. Good

XXXX? to compared Can a you see to in transactions. the continue of weakness transactions little You one-way level the on comment

Jason Berg

I'm but we're This not is to we're I -- mentioned Jason. in slight say, XXXX, I quite way those. back we've our if that. we improvement to December, Compared had to actually back that sure working would level, a been down

verify make here. I The before hope statement I is we're transactions my are the the that -- our ahead. in-town hitting transactions So on the to still want it. trough And would

verify number. towards can't I'll that So just headed if we're for back we're to it sure back yet. I say

Unknown Analyst

truck they're a the Okay. big pending Is the to mentioned the but there waiting just in cost while in And still sale, carrying fleet. sale? those fleet you have

Edward Shoen

No, no, you just dead is cost not of cost. Put battery a thing think back charger, I big don't. that, like goes throw a interest, something on No, at they take cost but capital could to the yet. it The battery it. just there's worst it

I'd astronomical. If up because them see to be going prices value, in value. just might down where I in to And be truck they're are have frequency enough anything, don't could I but they inching new not that. willing predict But

prices. kind truck that way rough used so typically, to And of through flows

ensure So doesn't self-insured cost there's no essentially. It certainty. we're to absolute that us more

insurance trucks we an event, the doesn't parked, have event. So if insurance an have unless it

basically You're not the looking I and cost. is depreciation real depreciation -- at think or a

capital you a I the whatever think for is on tied of have up cost. value whatever flat Jason is them put then and to or increasing, wants that

Unknown Analyst

growing, you with their are and talked local vehicles over Okay. Or the are And one-way bit the fleet earlier, availability? about in-town that little to the older the That's switch down? do an one-way good. transactions sort this need a of is while vehicles still number to and opportunity there in you but of

Edward Shoen

doing We're that. exactly

Unknown Analyst

And a are lower of returns they're because costs? higher and vehicles, for or more utilization the maintenance older repair function undergoing

Edward Shoen

is new vehicle or a one which question is more that profitable, old is? I one, guess, You're asking an

Unknown Analyst

more specifically they're while vehicles. older of the the the by more higher or for no, Well, downtime impacted the being returns repaired repair. Are cost there

Jason Berg

out that the of the we days truck them. that by takes which the for depreciation our model has out, dry. fleet experience in will offset the utilization, as individual repair Any that we the But into the account costs, in -- increase significant maintenance is expectation largely decrease the expense in towards shown them the decrease the increase allocate and in

after straight-line down And X, year depreciate of by So them XX%. that, the the these we to trucks we X down to then like next years. end over XX% or XX%

as cost low there. of and a offsetting rich increased cohort a And largely cost depreciation up utilization. that ends the there's So lower

through And the to of we were on and just Stephen, one-way in a December, button put December we're question, XX-month XXXX. I transaction still checked, ahead trailing on where

as have much as back it ways still pulled I made hasn't it So sound. We're ahead.

Unknown Analyst

versus self-storage. And supply stores non-same-stores, there? percentage for supply new What new just struggling the and on question of expansion is one

Jason Berg

then X been more do would haven't a and pool, that good that's a ones don't hit into could If age category stabilized I breakout the than not broken but haven't way, question. that see there. that out of in haven't this they've a that lagging quarter. that hit I there really I fall good I did have and years them question. -- That's that in been portfolio -- performer.

Operator

this back comments. questions There closing are now for no over final turn further time. to I'd at the call management to like

Sebastien Reyes

after May. you. file you Thank XX-K in support. We to our for the speaking look we thanks, forward Well, everyone, with

Operator

Thank you, concludes conference that this We for gentlemen, you ask thank sir. participating you your and your disconnect lovely today. lines. a and please call Ladies Have day.

U-Haul Holding (UHAL) 8 Feb 242024 Q3 Earnings call transcript