UHAL - Earnings call transcript Q4 2024

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Operator

Hello, and welcome to the U-Haul Holding Company Fourth Quarter Fiscal Year-End 2024 Investor Call. [Operator Instructions] Please note that this call is being recorded, and I will be standing by should anyone need assistance.

I would now like to turn the conference over to Sebastien Reyes. Please begin.

Sebastien Reyes

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

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

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

results, of uncertainties company's risks and the discussion the public that SEC a filings. company's the refer future please to affect For operating may business and

I'll over the Joe of Chairman call Shoen, U-Haul Company. now turn to

Edward Shoen

positive call gain Positively, parallel joining has have the in has huge vehicle Thanks resale less in pricing new this guess. How so go years come trade-off. the for the increases vehicle as expense to morning. depreciation resell this fall come a X abundant is far market a put last today. Good still down GM and Ford increases over in pricing Ordinarily, product at increases. into on and There down to is the The the is sale. trade potential will more vehicle repair themselves we and manifesting expense. failed for repair price are

chance upturn rental. for in an miles consumer per Recent reports indicate traveled some confidence

of are government costs experience. combination remain wage a So cautious inflation. far, consumers our It's Personnel in mandates and up.

whatever the is IT primarily through through increased way can best this and to you level. This Our improvements at achieve. retail better productivity, combat product is

We self-storage. expand footprint in our continue to

a than at rate We are them. but slower we adding filling rooms, are still

storage services are self-storage into. aim your have Q&A you smart choice. to need-based is to still and there course, the of customer's to and do Both for section. markets, expand I us encourage in and the We, to broadest products you forward our footprint the are yet friends encourage We in I to Look be best moving the talking business, the to patronize many believe same. businesses.

Jason?

Jason Berg

equipment we and XXXX, quarter leading And loss of of for center we Yesterday, $XXX.X million decline the earnings a of for compared in to factors quarter fiscal costs the the year. increases reported $XX.X both the Joe. reported from earnings Thanks, and fleet decline retired full to depreciation around The compared XXXX. to fourth same year fiscal quarterly $XXX,XXX $XXX.X last gains continuing significant for most million in of disposal the estate. on real million

to million in first Compared fourth improvement results. revenue. a a experienced operating year, I'm in X%. highlight actually of quarter time last had rental quarter. slight XX that the year-over-year rental was that quarterly the decrease if a you flow you'll or To start look with had this, cash EBITDA, we proxy, to going see our we statement the for equipment revenue months or improvement off March income we at equipment $XX

were April results flattened to and seeing year. we compared Looking at combined out May, move last revenue

for ago. of to a into put Average decrease, less per X rate than above miles growth into the than previous we transaction quarter were the quarter annual period. better That we're compounded the To million $XXX continued X-year average fourth X-month context, fourth this rate. an years little in X% but translates

months. quarter while X%, quarter truck the X% for For revenue and mile the down transactions year, fourth were per and the down XX was positive was total for the

That's fiscal for year. increase for XXXX new a were million billion. expenditures last $X.XXX $XXX compared Capital equipment rental to

increased equipment million from Proceeds is fiscal total projection of increase retired million XXXX the for in number. $XXX rental fiscal this to in $XXX million $XX 'XX. initial by sale a about Our of

has per in price The declining. from Average been sales. is proceeds truck sales additional coming increase steadily unit

As from the large of of the we decrease $XX both mentioned, in year. a stems a last the component to from disposal gains decrease equipment million compared for of fourth in the earnings quarter quarter

As to need we've recede trucks rotating and the the on previously our to over fleet made on further XXXX XX us course expect our commented, progress the the we'd projects gains side. of to fiscal backlog continue these be fleet, for where of next on we We've getting estimate months. back new to progress into

before. trucks number year, about We've of XX, end this the At from by reported increased X,XXX the which sold of trucks year fleet, down March XXX,XXX XXXX. to in we the the compared XX% nearly is

have Now March still over fleet more of years than XX,XXX ago. to if that we the in you did we trucks X XXXX, today compare

a a For for were XX% a or full we units about increase for occupied the year. up in revenue or X% square self-storage, with little million improvement over through the quarter The and been X% months. has revenues of increase progress a $XX.X X.X% per down $XX.X million of The number quarterly coming was the increase combination revenue combined as the foot foot. rented in year-over-year XX in per

just the that Our combined, due increased to XX,XXX units while by ratio of occupied we've points of XX,XXX. addition of so number units locations constructed under new we occupancy all XX%. total That's decreased portfolio, XXX the the our to basis largely

you in pool, If down this narrow XXX XX.X%. we to saw occupancy basis to decrease group point same-store a the

new the development with invested in That's $X.XXX declined billion acquisitions increased. has these properties year of XXXX, self-storage the $XX fiscal down U-Box During along real has and of investment Spending million from development. warehouse in acquisitions properties estate we while before. on

X,XXX,XXX feet, square XXX XX-month we quarter, the new our net added which rentable brought During to figure new square feet. X,XXX

robust Our pipeline pending of active feet, and square respectively. X.X million remains projects and at X.X million

and of of and improvement at expenses for million million. consecutive and repair maintenance the quarter moving a were year. had fourth fleet for million decline $XX now the second storage We've Operating our fiscal with up $XXX quarter $XX

to million, expect continue move would $XX costs fiscal over to still XXXX. was see I course but down the year of these the Now up

the As this new rotate for ones to to the we've has maintenance. begin oldest positive from remove been and and repair a been fleet, able in trucks

the in our for increase costs year. some had the development accident quarter $XX $X seen the the for last on mentioned in this We've and also as press million $XX the year. million personnel we I increased million liability quarter release, quarterly fourth in negative claims

quarter maintenance million and taxes including up $XX $X in and Property the property million year. for the costs, utilities, building were

and our will be today, our Investor that available SEC on We later are filing the XX-K website on website. and both

slight you and I Sebastien our always our some will financial any This presentation. audit available changes statement first in this. Deloitte, is with you about have are if so see questions

begin hand With that, the like our I to question-and-answer would call portion call. operator, the of Guion, back to to the

Operator

will Instructions] [Operator our first We with Research. question from today Keegan take Carl Wolfe

Keegan Carl

I trying of time, Maybe improves just on point, I'm we at obviously, the fleet. the because expect some that. at understand fleet guess starting refresh what more just kind added we'd we you same time. But over on is, can also expect to the the CapEx improvement as utilization

takes you utilization, help the the improvements? an of puts and offset increase there maybe could how sort on CapEx understand some of in us So just

Edward Shoen

you're can experience really as what the Well, looking and I My correct, utilization out place. is that's the by to drive what bring of you're increases basically points, that's utilization. is to you think continue decimal do about

inherent we a to against which have we course, distribution, which the have attempt in widest utilization. conflict our is strategy, cuts Of

to dealers might out program with our over you dealer As considerable our we're our exceed going grow usually utilization continue the try amount, and imagine, stores of next by yet the year. a to

you kind As vehicles more little uptime with bit we maintenance, an of makes and can it equate available rent. uptime that -- get a reduction increase also for in in these

a decent of say, results down last, in been we've under having the XX pretty vehicles number holding So days, for control. I would the

to in fleet, we're a register. did when types certain it vehicle And been take controlling off the largely rental So doing better we the on that what gets same. referenced. ago year It's we've by is than you able of scheduled of maintenance, refreshing a we for which -- a job the

Jason Berg

had on on also went I that into maybe remarks, we my largely in pointed this a age. XX,XXX last a out -- year. was result last we almost to prepared still and behind into which little Keegan, is than I going We of this over by trucks longer more Jason. we're year backlog a rotation, of a their year us with holding into X/X cut trucks that probably COVID,

units up us to be freeing able it's So take of more some to out. those

of points. important At Joe number part to So least measured in something is we're holding. it into us. translate can decimal decimal mentioned which the trucks the point denominator, equation does that very the be is of utilization,

utilization. improve a see thousand going left -- or opportunity more end And next And of surprised I fleet year. same be give utilization us wouldn't or total think few to size improve the these the it's about the again, to of by maybe as shed trucks, I the fleet the trucks we to older

Keegan Carl

That's the maybe Obviously, moves one that is it's gears press color. in really here. below I just still way commentary guess shifting helpful release and the expectations.

us be of you on reference, sort one-way that of guess, commentary peak May, move metric, frame are And would what guess, your or of moves. could way typically April any in in I help helpful. specifically moves just understand, and into we moves leasing percentage one maybe specifically what as -- season, maybe I really

Jason Berg

with just figures. the some Jason. is This off start of I'll

this break So historically I -- to up. got well,

last, XX we've revenue years, say, about XX% one-way. break the Over XX% a on in-town, probably been

a XX is percentage the closer I points. stark. went years, think, it's that couple you XX -- more a over And of much to narrowed If transaction COVID, little back, XX-XX. Throughout break was it

The break the revenue I number well, percentage increased transaction remained of the points. one-way of several same. moves about amount -- one-way say The

little were mile. So per charge able and bit to moves, was longer a it more we

So that revenue the like. kind and what the looks transactions of outlines

for And any I'll to it Joe prognosis.

Edward Shoen

is people really like need I lot steadily and think how dollar move do still still amount rental. how big the valleys, and inherently just miles has said less They results with don't over things When smooth. the have kind and about are transaction something how People of therefore, of is consumer it's they conservative, peaks based increase of because marriage things these But time. to in life. and on they that moving that a Yes. I and feel a far pretty deaths, move per births, the

move the and new present I'm they in move conservative, a neighborhood, kids adventure I'm my will to us. same say, keep But more great. to house Well, going my keep another San on it's think school, to well, in They big great. career. start to the for they be get job. great and That Diego go when going the

have cost very our large because with mileage So the to just incurred. incurred recover costs move. to much shortens that a extent, And based vary on we mileage

quicker play at bit I'm I greater little effect a think big So I called, But a but running anticipated bit modest we has going housing than this residential we're And we're see we're -- would the shift. new our turmoil home running, they whole expecting pick how a we to historical and see sales. people least whole the I have. shift trends would we'll -- year, thought see or has than experience, economy effect life it have this or And some don't behind I think, whatever about last their how it. I situation a up it's on out. not feel little has behind still

Keegan Carl

I the to guys release? are twofold. doing I I this months gears out. curious, you few press is guess, around guess your how that with release, out in decisions competitive storage. I Joe. specifically press helpful, really That's guys in your the really past to thought what in put shift I'm the second, And cause rates? just changed pricing commentary What's calling you street to impacting let's stood guess

Edward Shoen

strategy We than they have our different competitors of larger a rate have. claim most

is out the all the to enough competitors survey really go you it make It's up, demand -- And not or sort significantly. want and is the when jack to of whatever prices reduce way of down, where you course, calls. Now rates model a have they significantly. But our Internet. demand know just pricing to doggedly only prices just call when is they they cut think demand some prices,

stores. We We're model. don't one our people who in pursue the the of few post demand prices room

strategy. to that months. proven you and And done ahead what last XX% not right hotels XX% a least think to sometimes. do we XX we've be at follow rate competitor, do our would be If person nothing to the rate like to than for maintain given modest go person increases kind of next reasonable, motels And our them, line I some the it be over has were in to of quoted to different the ability

increase what lot would do what now into of summer, say, monitoring into that. control -- it a whether I the any during pricing of go competitors than prices the our other which they there's window is Now no have factors demand that don't model this the pricing. that I

know this, pricing. or my jumping around to in don't pricing have getting And a bad steady more if experience, deal. deal They much they're So the a customer. good approach we confuses a

we if really a discount, discount. So offer a it's

but confusing the It's have they're the jack charging and you and put really that they're the department not rate until we of in then off a you -- of doing stores They charged discount to getting it cost a used how the they place, see price. that you. in all and then to kind would you're what inflate sale first is

process. we subscribe So to don't that

admit foot -- are competitors them. this believe per they drives for revenue square that Our

difficult but it February competitor of in, to honest confuse XX% customer would very see me be they you for give the go that, to appraisement let's back does if It's an a say, us.

And that, been -- and we we've we have with deal with just dealing it. so to but --

and know do the that we to words, down. proceed other up this business have to a -- when going rates they successfully come reduced are season. going they're to on I'm ahead increase going if prices really bit less In kind little to was going not us, into explain a their see they're I to demand they Are demand confident and it don't price. customer with having in of that they to

but we're that. per so impacted stronger concern the square it's to But size explain try by all income we generally -- And foot. bit income a in because some in by some little price we're to than might we rooms, the yes, and rooms to square impacted markets, of per by competitor. we're impacted be foot, a able But customer. it maintain constant rented. course, And we're we're And

Keegan Carl

that, guess, appears stay on to to what any of two-parter sending of in guess some seeing I rate concerns? seeing I you mean, change any just out? how increase rate And things, guess your difference the reacting are given side length the are on I you increases here. customers your you're average in be I just macro are

Edward Shoen

we're tougher the the The constant environment, whole it a conversation some macro And far ago months not changes to are. yet. XX than probably quite ago. really than as other than a months was and it business into tougher XX increases rate storage tougher little summer? in as is bit Is the certainly last I'm than not absolutely little certain it and compete in

are mindset the -- to what is think you no there. do say, longer scarce. storage longer They is want -- the of So but consumer scarcity there no

to a pretty they And want tend that do the So discounts. a have We value. putting what's to a with the have of without we long-term customers being conversation, pricing tradition big operation. value

we also aware competitors price, is don't a it's And words, think very then They're all my of intelligent a strategies. but bunch. They're different very in dance don't all people. are discount the the price what And have So smart. now well doing they we and we jack just other it. necessarily then

Jason Berg

Keegan, this Jason. is

change couple a from we're not like to your year. year-end dramatic a on what looked question, stay get looked front. last they last was what In to maybe I X% Just compared year. buckets, average there our the anything that at just of Otherwise, it that numbers seeing were

Keegan Carl

last opening in because Got was the it. brought remarks. it And me for then one also just up

next how XX in general, I your impacting in in months space? on supply the guess, your views guess, think deliveries what we should outlook are the about that? And Just I supply on the

Edward Shoen

You're vehicles? motor talking

Keegan Carl

self-storage. No, on

Edward Shoen

to to rooms feel guess. Self-storage. going We're market that would probably be more my we than bring

Of course, fill I'm trying to rooms.

XX we're We have New tough could rooms, are, doing than some months York easily a to California, be depending It where construction it. -- acquisition pressure new fill But new could process. know and on a in they it's everybody construction, be XX-month more areas all process. these like XX-month on you

market I'm rent as see smart these And we us where indicated turn just termed remarks, off in will expand, markets in I not my believe that get net bigger we more rooms for it's as storage So good. going the there's as aren't markets. I necessarily. to I to

-- that to And I'm so that's going trend. on continue

rates and are it that up going encouraging be interest Now careful. to is Jason course, finance having he's, of me higher, to

So we can that. of be sure

Operator

Our with next from Steven question Zacks. comes Ralston

Steven Ralston

line couple estimate only was target. look I your your saw line this seasonality, however, a line quarter-to-quarter reported. it exiting put tone, that since some the I good. well, that And -- was was using the top from the the was adding company And the I'm it it when rate and Personally you of And historic my on top with out trends at exactly like quarters -- top way. it ago statement From right gains. met that's to there, growth changing. that to saying what estimate pandemic The returning out looked seems your

asking And premise, into should fiscal so adjust should? if I are XXXX going seeing I what where you, forward that I'm you

Edward Shoen

Well I'm know -- this truck I is pretty Joe. rental rental. well. truck on hammering

there, And post think think to I not we appropriate. with hat customer. it's we just year, -- any the it's in just we're coming I trick going I go I on okay? think don't think decreases need the they're increases, to out

as growth rented try to rate do more bit can we're would now, now. all And from that, self-storage I a mile, to this customer. year we whole more a to in get personnel took, increasing look because I able that the mile some square government. we -- speculative those abuse per is specific think kind are are In for may the And we're careful to net increase. don't We up. that rooms foot very entry-level again but bit tiny the going On for gain little and pennies more a going do prices foot. okay, which truck year a we rental Self-storage, push just by occupied but hold on tremendous a truck getting a to we a year, rental, square steady, as small add we little percent per of it's and not what gets opposed if in a be if of probably and see have least of expenses total right to at pennies is a both leading decline profitability self-storage, in

they're and terrible massive, It's to have pressures, make just the also these inflationary are under all people truth. more. they That's

all. you in see in in or just an health government $XX for service, you're so hour, they believe they food make course, who getting California, exceptions you depending -- for everybody depending of you got if $XX they've entities. didn't or on And an exception make But care

So just those pure this wages. to going is up push

So speculative. which we on always have is to productivity, drive

programs We months X it have pushing IT should months, A requires this XX IT. on. we're invariably takes take investment lot and in of what

get it, substantial make made And would So we've there. progress and expect self-dispatch continue don't I we in you How will self-return, gains it but customer -- basically of you just quite productivity increases don't know. far to personnel. want, you push what you can is our we which

But to do do-it-yourself enough, it if happy themselves. is are well business. this we a work it customers And make

return our many themselves. -- customers dispatch prefer or themselves of it some in to fact, In it

Steven Ralston

a different as productivity in line the other is that, it insurance The basically you've for has bottom Okay. Are look the any costs of with the for I you a expected depreciation, not you? been that costs. the you personnel liability the went at Well, hold as had The the existence. -- company. been long you and there driver cycle into addressed -- enhancements and will true and that concern just the costs that's you with you the IT way which

Edward Shoen

now. cloud. sale the down Sure. It's other future And is In our negative gain words, gain on sale. right on is

certain of automakers up it gone that's extent, talking retail. last to months, pulled as upwards resale they've it hasn't pulled the a the have increase. And much costs XX%. tremendous XX And get to able them pushed But For up have up. prices. through been I'm as at

of how and doing is confusing this And of this thing so all gas taking saying just to but Chevrolet whole Ford out it and the fleet basically going then electrification, customer. play out

in subsidize the increases because with They've price customer smacked cost way electrification. with one us fleet for above them, every to existence they're being their using us vehicle of

And so to we're subsidizing it beginning benefit from it. and

was depending I estimate on of in study XX% result cost the user, increase to to country by cost, assumptions, read whole sometimes basis that some but classes XXX%. electrification it's trucks at total a recent least as in the inflation going Ryder. they as they total XX points, they -- certain by rent the to with And much read. of And impact estimate interesting

of it. that That's they're gobs follow electrification, them, for solutions electrification loosely from that say, impacting I money I great rent. spending engine really how combustion And and money, cost-effective transportation. they gobs have of trucks electrification when some they know But customers. on don't internal than they're spending the rent and don't in different coming works. everybody any they are everything Ford, on kind we agree it I mantra these is and money know overwhelming just of I is forces root its of really but

affecting these So prices availability. that's resale all also and

trucks making did. many they Ford buy just They making. as the as we in simply once simply aren't isn't class

not And so that sense. buy if built, can't you makes what's

same allocation. And the we've thing the pretty Stellantis had is XX Motors. basically been or months. They've on least at I'd And of allocation General on say, true for, much customers

fleet overall whether they have have their up they're formulas want even or get to supply to for a the going chain to to of they economy. whether Now have catch-up complex because catch

Air is far the going much I be so with We're a do. rest It's that driving target. they've not beyond tell unmovable. they're on you people to be dog. country, electrification the electrifications. the going to whole moving Board got very attempting the of scope now it's force what We'll the And of Resources California us tail can't a the

wildcard. that's think I a big So

if a are would to we're they but a less. will I extent, keep hold course, inflation us months rescue vehicles bit, certain the up vehicles the played we Of or inflation primarily XX little this we hope, -- these

so if put pick inflation, a isn't it through. is that have not be the It we long compensate to very an even cost not to up [ may inflationary years time And mean for enough -- they it's X ].

does, just I I we're whole X for electrification haul. I this it XXX%. know. last Ryder the the So make to been they come when able vocal has years. electrification the don't this think leader accurate long going raise And going It out We're in I more study do in next XX% would to and everybody itself mean, this we're and customer it's the over or to with predictions. be then to it, thought And going. says going to month. cost business keep a deal recent will clarify X adopting

You good go not customers. -- news for well, your a that's

ball. all everybody's all on nobody which course, sure. of quite based it's -- not are these a I'm assumptions, crystal And has So

-- that's So see here of it a unknown kind you in sale. on, reduction gain our and that's on in that's going

Steven Ralston

one question Just and a comment. quick more

it that's assuming that that? are saw that's interest was previously? where new interest balance. line using verify other income. You Could just out I you said on you I Deloitte. guess And your cash there, item the a I'm why

Jason Berg

income interest negligible. and balance been we've cash historically, the always always a we've on has X because line have moving their income investment goes. storage interest had had we where And income insurance called So companies, net --

that in line. included was just it So

larger held operations. short-term interest income is got higher cash The of we've right, rates theory And part up. the behind much not number have time, gone As number. a balances, to be really is that our at same the

below So year, down what this it's operating for then call earnings. you reclass

a income extra our It's But now storage is government treasuries. other be -- and investments, moving work which that and short-term you market interest comparison. short-term is apples-to-apples funds on the an some little to money it. interest nailed there'll So get income

Steven Ralston

on you for and your are or To iPhone. unless wouldn't the U-Box, products employees X the U-Haul used up but use brought And just And have services products. enhancements. interaction on And and Okay. are and of or very I've telephone the pick and the X up mean truck U-Haul -- productivity the you it. comment, years, up -- just and and And have last I it. things recommend and obviously over Xx we reduced most this seen now accommodating. I everything the different mentioned it employees with works done been your call shows has for smoothly. the I

Edward Shoen

pushing that's that. very -- of on ahead I And result. certainly key on a trying on And we're term, competition. to longer our that's hard We're need that. We be very, think the

Operator

next Our King. question David comes from Silver with CL

David Silver

us Yes. questions be a you've had point that a things could or projected however you touched but you you -- you'll I just qualitatively But increasing spending just CapEx capital maybe which I where buckets could spending out it, think couple just if as little of maybe your to think just decline. where you'll see you more. may flesh but with on, spending you look fiscal at capital look the 'XX,

much or X? capital needed in or kind as So your of needed as is year the past perspective, from where just not most

Jason Berg

around is typically then priority every off a this Number for I'll year and had going year, somewhere Joe compared year. we gross let Jason. David, $X.X start one, of next this we're maintenance clean to CapEx us think, $X.XXX to, going up. spend CapEx. billion into billion be I And is projecting fleet

spend, what during isn't real but CapEx. of I'll that small CapEx were There all million, maintenance on in somewhere bit catch-up. pandemic $XXX a estate spend, much last years, I and $XX -- call, spent about acquisition because we was a $XXX delayed year, It's shortages the estate amount. land number. billion or on The development growth of billion embedded And of on down -- rest it's was pretty $X.X that that We would to close $X the a it's little buildings. over say real a the over new Of amount million construction. million, little

somewhere spend somewhere closer right, to of billion. close or to was in for fund you at Joe, real CapEx, $XXX looking close know next fleet don't I think be $XXX up net on year, working going to I'm add... to something year if million, to on projections that. to going I estate cash be $XXX want from $X needing planning to this -- $XXX than we're to say, up it a for is The million, I projections the think, to with, million that capital And come will -- million

Edward Shoen

right lot on -- that I there I a to think I less be whole you're than pretty that. think No, it expect and don't

David Silver

just Okay. last in number of picture versus And remarks, heard X more ago. question prepared In that a conditions current your is Great. this I references to spirit. question maybe a years big is And then question. of

I'm post-pandemic in wondering opportunity environment business your let's demographic as kind So you say, at customer your versus now, of pre-pandemic. how the look here,

how years here what bit. is things about guess, But 'XX, shifted, to just of probably have what let's couple work X just out priorities strategies something I'm towards year of remote off that or trend throw and as just the advantage I'll tied from sit So And a productivity mean digitalization kicking have it's kind quite your big or where of ongoing labor that ago? the I here, say, things. take or fiscal wondering of lives. their been logistics but trend. we I your digitalization effects implications your you a to And for people But or think enhancements differences live certainly, might features mentioned what other --

Edward Shoen

weren't that it customers. hadn't we I any remote didn't in this they say customers, work who been basically thing procedure, all These U-Haul U-Haul wave could Okay. it's new see was customer And I became would the a people and and coming, a were who historically with of tidal customers reason just those. hadn't sudden see us. they and feedback a didn't of understand or that that they business done that

mean, going yes, has still but don't the So to they it, boomerang of measurement bit you little wave because to got receded. where effect work employers a kind There yes, I fled is you have any that now newspaper from a to there's in yes, come see I and the on saying, and back a of but work. people

sure. wants And we any don't I'm from sales, out, telephone which going because administrative except anybody home want I've we told to much who team, as a capacity But so plethora from have far home, where of work our have for hire Personally, work it. not that's that. in homework to don't analytic an who or we appetite don't have as capacity people people an an to doing of optimize for

that And see having I many don't appetite. employers

closer boomerang some that who out. place some are So there's a effect. kind like from seen Idaho, But where And actually someplace of employment. there's little customers normalize back moving to should anecdotally I've

out people digitalization try success. ongoing that I is misstated misinformation that's them given And understand and I trend. just long-term -- of better lot because a there, The there's to a it what's continue think to have

don't but -- opinion. much my prove I'm I that's I Now it, that. can't to understand trying very

you course, easier. Because Of it important. the with has doing opportunity easier. business like that make are to That's all people things

of complexity the we seeing if So I'm reduce focused on and can thing. the whole very that

dispatch where can move particularly moving those a We point, of doing business you're because have and lot there. return of they're -- because the the point, be complex one-way different, have when there's somewhat you a doing been parts

part the and we're moving give better helps that. making And those parts progress of we're us customer in regular But anticipate certainty. more digitalization

I do think we'll to continue that.

you the answer. specific That's more I'd question customer know have a be -- respond. don't I happy if think will to I

David Silver

big at up ones Not your your about trends mean, certain guess, evolutionary, But I'll I guess, hear point. follow picture specific wanted in just this I with some no, I off-line. views more to business. I

Operator

with comes Wilen Wilen Our next from Management. question Jamie

James Wilen

couple A questions. of

to Did more is hang happen some the level optimum what's going with new we as just on say flat and going in and XXX,XXX trucks in and the we the the of the we're replacing that to hear First you of fleet, near I be that forward? will that have future probably in older is is move a number vehicles ones, at fleet.

Edward Shoen

No, if we said that, I apologize.

Jason Berg

Jason. Jamie, this is

our of what year have year said most last maybe I even next maintenance I this said CapEx. is CapEx into and going think I maybe might confused.

more perspective, trucks, but So purchase also to selling a going buying from be we're we're more.

that there the think be size I down. overall fleet the coming So is that likelihood could

James Wilen

Okay.

-- on. see So if we go

Sorry.

Edward Shoen

allocation it. that on of doesn't able have of It's on in we doesn't production XXX,XXX complex, have to XXX,XXX miles And trucks got buy little it. it with X-year and a we've got our necessarily size kind And on a a not say, what to the too simply on strict it's XXX, the quantity just truck between it needs depends the period, the more miles has been bit XX,XXX just which gap, truck And replacements with okay? -- let's so because that many are. complicated miles we've because are on for offering capability of that's automakers tradeoff, truck a a mathematical and of than due postponement you're then correspond it's

of to may grow that see grow numbers going the of -- the next we to and fleet X trucks a gorge just but the be have, a I we're us contraction you in are for fleet, in over your vehicles the shrink X,XXX -- closer slight will I will don't capability this produce. in of to or that can growth capable trucks, total might automakers looking It don't those and the I next if trading not months. we have probably yet numbers commitments may can July, know the if what hard have and So don't production, middle you go X sale. of I'm willing every higher fact mileage do to you for -- that year the of him these some bring or start maintain bring but Well, up, as be in XX X,XXX help and it's fleet year's that, where transaction kind opportunistic our can you're to

simply up. going get this And the business. the help it. But of short firm So share the long that business we that of expands. to our and because ought a to is will That's footprint, and population expand we good have

James Wilen

Okay.

year So grow percents over next as by utilization important. hopefully, fleet of that those rentals, are tens or the so, increase we should the

Edward Shoen

for, looking yes. we're what exactly That's

James Wilen

Okay.

you side, the talk and could moving you as through On forward profitability U-Box wise business and where about is the look then health in it that XXXX XXXX? of

Edward Shoen

words, and U-Box moves bit there's there other more it's XXX under bit And one-way a are that's XXX a The versus amount been. what nature miles. over In lot higher our Sure. has moves. a the emphasis than a local of little of product, miles the little has

exploring contract if to expensive you -- which over in the So freight. months have if the now, we are crack economic for next short with see into prohibited moves, we're can have good we a the been to for customers distance proposition ways some

So And get you these basically. carriers the if kind common going -- going X,XXX affordable. you're kill XXX if you're they miles of miles,

move if going continue shorter Otherwise, has has sweet -- see -- show will So the carrier and pricing we're and moves in U-Box. rates. been still we've common that's longer can But that our with reflect the there's into get demand spot to been a the and -- to our we probably been profit. and

transaction same day, the very -- They've on down, come little XX sense? only not have a down but down growth last is we've or months with that make margin I'm dollars, anyway. but seen not our come rates modest in which over come Does them growth better. the every with and they've means

James Wilen

gain would or how you U-Box? share market that for the within business loss characterize And

Edward Shoen

not we do If love micro all hear on We see And to to there to markets don't can that easily, I'm have. I'm don't can -- information. that what then, we see We -- ourselves. them really of has I firm I'd relative at all. just course, and have because them, down numbers go anybody we

It's I we've somebody up down something see stupid or substantially if and that places, places done usually effect. and something there's in did we there's where other is somebody so And is cause correct.

I very yet say, attempt pods, market that to, find share We have to. -- it's no essentially that, source us to haven't willing comparing reliable them, speculative. got overall, But a let's we we of say, would information we're on

we them, -- there, tapping we're just model We're get and a to but crack and course, working lot to what next big our there that my what calmly getting a go our costs call that's all markets. we're potential of deliver But out it. And free. for it's stuff this says this, of great a builds into less how to they're customers, zones, recover team need doing certainty and base. satisfied we business. we -- just with more can on and than And rather some and distance shorter into There's

we've we're some So pushing progress. made on that, and

James Wilen

that competitive give storage your out a sort places build have you of you Does self-storage, of any lot As the U-Box advantage? within it.

Edward Shoen

think I it does.

James Wilen

In the business?

Edward Shoen

footprint over in middle States interesting. anybody warehouses advantage business in the and be the can and XXX-some near that gives we're else us Canada, customer tremendous somewhere we which a the very now, over Right the United in

want their things. to to people better And that's way with I it. Some customers. don't say know be close to those advantage

tell have having could care be they're there. you're at at Now you Adams, to there's it But customers to you'd shocked you it many going who less. how if them very & committed Central

have you representation. good on can you warehousing, enough So that make actually to need

James Wilen

have? in pods in how you any might the idea If many have XXX, your --

Edward Shoen

you number mean that give couldn't I I I No, but don't just... think it's much.

James Wilen

what And could in depreciation on from charge XXXX? that you self-storage, lastly, was And XXXX? how your us tell Okay. annual differed

Edward Shoen

course. of sharing, is Jason

Jason Berg

for me you. the numbers Let find exact

me. I So in right it thought the had fleet front -- sorry, I of

And XX I the million. depreciation it about last Okay. and buildings, on like $XXX also Jamie, service fleet months the what $XXX million. call estate vehicles was real over was

James Wilen

could what the Okay. And could year, versus you numbers tell were? us you previous those tell

Jason Berg

Sure. It was million. $XXX million and $XXX

Operator

from with next Close. comes Our Oppenheimer question Stephen Farrell

Stephen Farrell

looking has last increased The decreased. maintenance million fleet fleet since $XXX that, X XXXX. the further about before quarters, But end back maintenance of

As increase much that to back? fleet, you the get rotate you of expect how do

Edward Shoen

a a for but it. lot I have of fighting I'm don't really projection

but exceeds or of on up, per a Ordinarily, spend we Labor has gone once a gone didn't depreciate, -- a all and there's spend certain truck to just that on mileage. And so always mile trade-off have mile really trucks -- but to always repair. inflation you going point. Now at to have expenses, money up. becomes negative expense of depreciation bunch out to some the to was out in has get had stuff repair parts, the that mile depending of we you're course, amount per maintenance, --

half about. refleet. allocated holding was be And than would was have million $XXX our of of would it's I -- it you that's why I probably million, the wrong, to let's and And longer a need was time say more we druthers. I it that been increase a say -- -- that due but to over maybe of million $XXX so say $XXX talked than may truck would you

to So it we're portion and I that being earn back. at to increase fighting capture of back, significant But spent repair look of but we're back. cost providers. ended deal up labor third-party a of that positioned fighting course, that cost per to we're great earn A

just the parties over our last of percentage that we'll slipped always years. focus But make something. locations the much lot It And And use to third middle we remote a or what it can provide come can way, that's I for or trade-off come my seen. be maintenance. how remains back. of X that night own is, back We and our the make

But money there's there. substantial

won't crossed year. get over back X and in as come take progress made -- we in trucks of Assuming of Jason years some couple we this to year, back. this that can get we And progress probably a on the will said, to it problem. It

Stephen Farrell

moving your based parts on elevated personnel are of big levels expenses. moving extent, which just a And operating liability, it sounds forward? certain just the the should like comments To around other we expect

Edward Shoen

year, Well, on XX next I the it's in bet both, next pretty a months. throughout XX near term good think personnel, or the

theoretically little I inflation just tremendous minimum those putting bit Mississippi they're wage standards whole We is to it that base on New country, salary the They're for more and they're that's acceptable then is I and your what but and the is and but live people. to plethora have a we're not a There's and it's in work mandates. think that this personnel, -- metric, that around the normal bumping up. person, salary the that's have, and all. with but There's personnel, it's bumped. these to for California obvious between in $XX,XXX now York going is for no personnel. salary thoughtless, these Government salary pay and a for mean, to mania going and I putting states -- difference. which the be And salaried just federal pay the mandates stopping New minimum regulation, a difference you wage of personnel, minimum than like same have tell putting you York of what it. That's some can

have you vote chance Although in a November, to that's pod. my

Stephen Farrell

and you just million moving kind moving And quarter self-storage. given were you be think year, targeting forward? that to guys your comments and per had that lower commented feet Last self-storage, outlook Okay. about X cautious of do square will around you

Jason Berg

Right X -- you're property, a we're months committed and committed now, use it better you're but to committed building order minimum once ground, I to and permits you acquired the break it's are money prior we a process, that. most kind of committed into don't and think with that's so. a in those get you're of land projects said, to of bunch with. to XX-month I there's Again, and to you significantly your ground committed proceed these as breaking ahead because to the of so city commitments

cut it. to you've So deal, got you're -- to certainly, actually do the

see we -- We're don't you it that. you half before don't build -- if foolish, it is matched. building something foolish well money, that's cut like truth, seen that. of that's the have any but carefully typically that we've do course, would all you It's carefully pretty you do funded, But like foresee sit, you when months unless XX something to It's it happen. let

So reasonably foreseeable those over kind months. the actions XX we next don't see of as

And I markets and just ahead. not to there that on go slugging -- to there's are focus opportunity, markets, those believe many out. continuing trying we're there's I'm So it

or continuous But country map. availability is not the It's over all whole the for storage or penetration smooth.

and And see maybe we're you can locations, the focusing get out. than if pans right little we'll bit so how strategy do okay do hope. better can market, on And you and least micro in that those at our okay my still a

Stephen Farrell

pockets highlight where any there areas are you you seeing And that opportunity? are can of geographic those

Edward Shoen

rushing with because don't small don't I even want won't okay? a more besides I I -- talk in Hardly, talk need them. I to me, people No, any circle of friends there

estate information And just gives compete going, that know they more people bit there. to There's well, one of real sharp them out if of plenty us. we're where with

keeping I'm So quiet. that

you in to But do metros. in acquisition find X-year these is business there's a we we capitalize and actually ton the that money but want really there available was okay? in Most but right of you L.A. L.A., from X we cost. top we any out don't ever completion. out may slug you a it I'm and major that And it, slug to it head L.A. taking paid don't of all term you years it, because one will capitalize, off of project my make --

you that than so more to of don't any it. want to have incur And you

friendly. business The entrenched. So competition there's are is other markets that more

for So we're heading those.

largest have in people footprint business. states. We're the the only in all We in all the provinces

we're In the all only people fact, states. in

already, one doesn't And there maybe that lets of but hard us competitors. would see a stick our market because is it we're out REIT as for as

they're they're people and costly ] savvy numbers. Although very [ the running

Operator

our questions this time. would over remarks. no presenters I of additional turn at now We to have further conference back for control any the

Sebastien Reyes

the everyone, thank Well, so support. for much you,

file we plan first our after As look speaking later in to we our you. you XX-K and August. forward with we a reminder, to results Thank today, quarter file

Operator

participation. We everyone. conference. you, your appreciate Thank This concludes today's

any at disconnect may You time.

U-Haul Holding (UHAL) 30 May 242024 Q4 Earnings call transcript