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Press ReleasesAmeriCredit Reports Fourth Quarter and Fiscal Year 2007 Operating Results
FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 8, 2007--AMERICREDIT CORP. (NYSE: ACF) today announced net income of $87 million, or $0.66 per share, for its fiscal fourth quarter ended June 30, 2007. AmeriCredit reported net income of $79 million, or $0.55 per share, for the same period a year earlier. For the fiscal year ended June 30, 2007, AmeriCredit reported net income of $360 million, or $2.73 per share, compared to $306 million, or $2.08 per share, for the fiscal year ended June 30, 2006. Net income for the fiscal year ended June 30, 2007, included a $33 million after-tax gain ($52 million pre-tax), or $0.25 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc., and a $21 million, or $0.16 per share, reduction in reserves for contingent tax positions. Net income for the fiscal year ended June 30, 2006, included a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc. Net income for the quarter and fiscal year ended June 30, 2006, included a $6 million after-tax loss ($9 million pre-tax), or $0.04 per share, related to the redemption of the 9 1/4 Senior Notes due in May 2009. Operating results include Bay View Acceptance Corporation since its acquisition on May 1, 2006, and Long Beach Acceptance Corp. since its acquisition on January 1, 2007. Automobile finance originations increased to $2.51 billion for the fourth quarter of fiscal year 2007, compared to $1.73 billion for the same period last year. Origination volume for the fiscal year ended June 30, 2007, was $8.45 billion compared to $6.21 billion for the same period a year earlier. Managed receivables totaled $15.95 billion at June 30, 2007. Annualized net charge-offs totaled 3.3% of average managed receivables for the June 2007 quarter compared to 3.9% for the June 2006 quarter. For the fiscal year ended June 30, 2007, net charge-offs were 4.7% compared to 5.2% for the same period last year. Managed auto receivables 31-to-60 days delinquent were 4.7% of the portfolio at June 30, 2007, compared to 5.1% at June 30, 2006. Accounts more than 60 days delinquent remained stable at 2.1% of the portfolio at June 30, 2007, compared to June 30, 2006. "Our financial results demonstrate our continued focus on execution and our commitment to position AmeriCredit as a leader in full-spectrum auto finance," said President and Chief Executive Officer Dan Berce. "Our quarterly net credit losses were the lowest in our history, reflecting both normal seasonal improvements and a shift in our portfolio mix to more prime and near-prime loans." During fiscal year 2007, the Company repurchased $324 million of its common stock. Subsequent to June 30, 2007, the Company has repurchased an additional $100 million of its common stock and has $200 million remaining under its board approved stock repurchase plan. "We ended the fiscal year with $910 million in unrestricted cash and have ample liquidity from our stable and committed warehouse funding program to efficiently execute our business plan," said Chief Financial Officer Chris Choate. Regulation FD Pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. The Company anticipates some risks and uncertainties with its business. The following net income and earnings per share forecasts have been updated from guidance provided on April 30, 2007, to reflect changes in the company's current business outlook and the impact of stock repurchased through August 8, 2007.
Actual Revised Forecast Previous Forecast
Fiscal year ended Fiscal year ending Fiscal year ending
June 30, 2007 June 30, 2008 June 30, 2008
(excluding one-
time charges)
------------------ ------------------ -------------------
Net income
($ millions) $306 $320 - $350 $345 - $375
Earnings per
share $2.32 $2.50 - $2.75 $2.65 - $2.85
The forecasts for fiscal year 2008 incorporate, but are not limited to, the following assumptions, which remained unchanged from April 30, 2007:
These forecasts do not assume any share repurchase activity subsequent to August 8, 2007. AmeriCredit will host a conference call for analysts and investors today at 5:30 P.M. Eastern Time. For a live Internet broadcast of this conference call, please go to the Company's Web site to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About AmeriCredit AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. AmeriCredit has over one million customers and approximately $16 billion in managed auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com. Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties detailed from time to time in the Company's filings and reports with the Securities and Exchange Commission including the Company's annual report on Form 10-K for the year ended June 30, 2006. Such risks include - but are not limited to - variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, reliance on warehouse financing and capital markets, the ability to continue to securitize its loan portfolio, the continued availability of credit enhancement for its securitization transactions on acceptable terms, fluctuating interest rates, increased competition, regulatory changes, the high degree of risk associated with subprime borrowers, acquisition integration and exposure to litigation. These forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ ------------------------
2007 2006 2007 2006
------------ ----------- ------------ -----------
Revenue:
Finance charge
income $591,792 $458,874 $2,142,470 $1,641,125
Servicing
income 354 13,417 9,363 75,209
Other income 33,247 15,552 136,093 86,157
Gain on sale of
equity
investment - - 51,997 8,847
------------ ----------- ------------ -----------
625,393 487,843 2,339,923 1,811,338
------------ ----------- ------------ -----------
Costs and expenses:
Operating
expenses 107,888 84,683 399,717 336,153
Provision for
loan losses 189,920 157,051 727,653 567,545
Interest
expense 194,884 120,804 680,825 419,360
Restructuring
charges (1,482) 919 (339) 3,045
------------ ----------- ------------ -----------
491,210 363,457 1,807,856 1,326,103
------------ ----------- ------------ -----------
Income before income
taxes 134,183 124,386 532,067 485,235
Income tax provision 47,328 45,542 171,818 179,052
------------ ----------- ------------ -----------
Net income $86,855 $78,844 $360,249 $306,183
============ =========== ============ ===========
Earnings per share:
Basic $0.74 $0.61 $3.02 $2.29
============ =========== ============ ===========
Diluted $0.66 $0.55 $2.73 $2.08
============ =========== ============ ===========
Weighted average
shares 117,999,621 129,139,155 119,155,716 133,837,116
============ =========== ============ ===========
Weighted average
shares and
assumed incremental
shares 131,816,572 144,286,513 133,224,945 148,824,916
============ =========== ============ ===========
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2007 2007 2006
----------- ----------- -----------
Cash and cash equivalents $910,304 $615,395 $513,240
Finance receivables, net 15,102,370 14,367,447 11,097,008
Credit enhancement assets 5,919 5,977 104,624
Restricted cash - securitization
notes payable 1,014,353 1,144,173 860,935
Restricted cash - credit
facilities 166,884 194,693 140,042
Property and equipment, net 58,572 59,041 57,225
Deferred income taxes 151,704 153,521 78,789
Goodwill 208,435 200,497 14,435
Leased vehicles, net 33,968 4,352 -
Other assets 158,511 139,815 201,567
----------- ----------- -----------
Total assets $17,811,020 $16,884,911 $13,067,865
=========== =========== ===========
Credit facilities $2,541,702 $3,004,774 $2,106,282
Securitization notes payable 11,939,447 10,883,909 8,518,849
Senior notes 200,000 - -
Convertible debt 750,000 750,000 200,000
Funding payable 87,474 93,170 54,623
Accrued taxes and expenses 199,059 188,984 155,799
Other liabilities 18,188 14,404 23,426
----------- ----------- -----------
Total liabilities 15,735,870 14,935,241 11,058,979
----------- ----------- -----------
Shareholders' equity 2,075,150 1,949,670 2,008,886
----------- ----------- -----------
Total liabilities and
shareholders' equity $17,811,020 $16,884,911 $13,067,865
=========== =========== ===========
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended Fiscal Year Ended
June 30, June 30,
----------------------- -----------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Cash flows from
operating activities:
Net income $86,855 $78,844 $360,249 $306,183
Adjustments to
reconcile net
income to
net cash
provided by
operating
activities:
Depreciation
and
amortization 12,712 7,669 36,737 35,304
Accretion and
amortization
of loan fees 284 (7,527) (16,982) (20,062)
Provision for
loan losses 189,920 157,051 727,653 567,545
Deferred
income taxes (13,664) (15,293) (35,850) (37,405)
Accretion of
present value
discount (243) (9,466) (6,637) (40,153)
Stock-based
compensation
expense 5,855 3,896 20,230 16,586
Gain on sale
of available
for sale
securities - - (51,997) (8,847)
Other (1,323) 2,539 2,396 2,853
Changes in assets
and liabilities:
Other assets 5,458 34,355 32,632 117,650
Accrued taxes
and expenses 6,087 (6,785) 10,572 21,677
----------- ----------- ----------- -----------
Net cash provided by
operating activities 291,941 245,283 1,079,003 961,331
----------- ----------- ----------- -----------
Cash flows from
investing activities:
Purchase of
receivables (2,549,195) (2,053,660) (8,832,379) (7,147,471)
Principal
collections and
recoveries on
receivables 1,631,640 1,263,928 5,884,140 4,373,044
Distributions from
gain on sale
Trusts 314 108,395 93,271 454,531
Net (purchases)
sales of property
and equipment (2,333) (1,320) (11,604) 29,234
Net purchases of
leased vehicles (24,961) - (28,427) -
Proceeds from sale
of available for
sale securities - - 62,961 11,992
Acquisition of Bay
View, net of cash
acquired - (61,764) - (61,764)
Acquisition of Long
Beach, net of cash
acquired - - (257,813) -
Net change in
restricted cash
and other 155,066 (64,039) (54,218) 123,795
----------- ----------- ----------- -----------
Net cash used by
investing activities (789,469) (808,460) (3,144,069) (2,216,639)
----------- ----------- ----------- -----------
Cash flows from
financing activities:
Net change in
credit facilities (463,075) 443,270 232,895 887,430
Net change in
securitization
notes payable 1,053,048 184,085 1,824,679 884,069
Net change in
senior notes 200,000 (154,550) 200,000 (167,750)
Proceeds from
issuance of
convertible debt - - 497,376 -
Repurchase of
common stock (90) (106,024) (324,054) (528,070)
Proceeds from
issuance of common
stock 10,293 8,319 58,157 32,467
Other net changes (9,038) (1,299) (24,309) (6,823)
----------- ----------- ----------- -----------
Net cash provided by
financing activities 791,138 373,801 2,464,744 1,101,323
----------- ----------- ----------- -----------
Net increase
(decrease) in cash
and cash equivalents 293,610 (189,376) 399,678 (153,985)
Effect of Canadian
exchange rate changes
on
cash and cash
equivalents 1,299 1,816 (2,614) 3,724
Cash and cash
equivalents at
beginning of period 615,395 700,800 513,240 663,501
----------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period $910,304 $513,240 $910,304 $513,240
=========== =========== =========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------- -------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
Origination volume $2,511,528 $1,734,065 $8,454,600 $6,208,004
Loans securitized 2,764,683 1,297,300 7,659,927 5,000,007
Average on-book
receivables $15,513,774 $11,248,944 $13,621,386 $9,993,061
Average gain on
sale receivables 26,483 560,251 105,831 1,223,469
------------ ------------ ------------ ------------
Average managed
receivables $15,540,257 $11,809,195 $13,727,217 $11,216,530
============ ============ ============ ============
June 30, March 31, June 30,
2007 2007 2006
------------ ------------ ------------
On-book
receivables $15,922,458 $15,123,907 $11,775,665
Gain on sale
receivables 24,091 28,979 421,037
------------ ------------ ------------
Managed
receivables $15,946,549 $15,152,886 $12,196,702
============ ============ ============
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------- -------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
Operating expenses $107,888 $84,683 $399,717 $336,153
Operating expenses
as a percent of
average managed
receivables 2.8% 2.9% 2.9% 3.0%
Tax rate 35.3% 36.6% 32.3% 36.9%
June 30, March 31, June 30,
2007 2007 2006
------------ ------------ ------------
Loan delinquency:
On-book:
(% of ending
on-book
receivables)
31 - 60
days 4.7% 4.1% 5.0%
Greater
than 60
days 2.1 1.5 2.0
------------ ------------ ------------
Total 6.8% 5.6% 7.0%
============ ============ ============
Gain on sale:
(% of ending
gain on sale
receivables)
31 - 60
days 0.7% 0.8% 9.2%
Greater
than 60
days 0.6 0.4 3.8
------------ ------------ ------------
Total 1.3% 1.2% 13.0%
============ ============ ============
Total
portfolio:
(% of ending
managed
receivables)
31 - 60
days 4.7% 4.1% 5.1%
Greater
than 60
days 2.1 1.5 2.1
------------ ------------ ------------
Total 6.8% 5.6% 7.2%
============ ============ ============
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------- ----------------------
2007 2006 2007 2006
------------ ------------ ------------ ---------
Contracts receiving a
payment
deferral as an
average quarterly
percentage of
average receivables
outstanding:
On-book (% of
average on-book
receivables) 6.1% 6.2% 6.0% 6.1%
============ ============ ============ =========
Gain on sale (% of
average gain on
sale
receivables) 1.7% 6.7% 2.6% 8.6%
============ ============ ============ =========
Total portfolio (%
of average
managed
receivables) 6.0% 6.2% 6.0% 6.4%
============ ============ ============ =========
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------- ----------------------
2007 2006 2007 2006
------------ ------------ ------------ ---------
Net charge-offs:
On-book $127,960 $107,751 $638,094 $467,386
Gain on sale 91 7,584 4,965 111,243
------------ ------------ ------------ ---------
$128,051 $115,335 $643,059 $578,629
============ ============ ============ =========
Net charge-offs as a
percent of average
receivables:
On-book 3.3% 3.8% 4.7% 4.7%
============ ============ ============ =========
Gain on sale 1.4% 5.4% 4.7% 9.1%
============ ============ ============ =========
Total portfolio 3.3% 3.9% 4.7% 5.2%
============ ============ ============ =========
Net recoveries as a
percent of gross
repossession
charge-offs:
On-book 51.3% 50.3% 48.8% 49.3%
============ ============ ============ =========
Gain on sale 49.4% 45.8% 44.0% 41.8%
============ ============ ============ =========
Total portfolio 51.3% 49.9% 48.8% 47.8%
============ ============ ============ =========
June 30, March 31, June 30,
2007 2007 2006
------------ ------------ ------------
On-book receivables:
Principal $15,922,458 $15,123,907 $11,775,665
Allowance for
loan losses and
nonaccretable
acquisition
fees (820,088) (756,460) (678,657)
------------ ------------ ------------
$15,102,370 $14,367,447 $11,097,008
============ ============ ============
Allowance as a
percentage of
on-book
receivables 5.2% 5.0% 5.8%
============ ============ ============
The Company's net margin as reflected on the consolidated statements of income, excluding the $9 million pre-tax loss on the redemption of the Company's 9 1/4% Senior Notes due 2009, realized during the quarter and year ended June 30, 2006, is as follows:
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------- -----------------------
2007 2006 2007 2006
--------- --------- ----------- -----------
Finance charge income $591,792 $458,874 $2,142,470 $1,641,125
Other income 33,247 24,759 136,093 95,364
Interest expense (194,884) (120,804) (680,825) (419,360)
--------- --------- ----------- -----------
Net margin $430,155 $362,829 $1,597,738 $1,317,129
========= ========= =========== ===========
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------- -----------------------
2007 2006 2007 2006
--------- --------- ----------- -----------
Finance charge income 15.3% 16.4% 15.7% 16.4%
Other income 0.8 0.9 1.0 1.0
Interest expense (5.0) (4.3) (5.0) (4.2)
--------- --------- ----------- -----------
Net margin as a
percent of
average on-book
receivables 11.1% 13.0% 11.7% 13.2%
========= ========= =========== ===========
The following table provides additional information for comparative purposes related to the Company's acquisition of Bay View Acceptance Corporation on May 1, 2006, and Long Beach Acceptance Corp. on January 1, 2007:
Three Months Ended Fiscal Year Ended
June 30, 2007 June 30, 2007
------------------------- -------------------------
AmeriCredit Total AmeriCredit Total
Core Core
------------ ------------ ------------ ------------
Origination volume $1,941,951 $2,511,528 $7,123,434 $8,454,600
Average managed
receivables $12,551,210 $15,540,257 $11,877,344 $13,727,217
Net charge-offs $117,674 $128,051 $616,557 $643,059
Net charge-offs as
a percent of
average
receivables 3.8% 3.3% 5.2% 4.7%
============ ============ ============ ============
Contracts
receiving a
payment
deferral as an
average
quarterly
percentage of
average
receivables 7.0% 6.0% 6.6% 6.0%
============ ============ ============ ============
Net margin $390,149 $430,155 $1,505,422 $1,597,738
============ ============ ============ ============
Net margin as a
percent of
average on-book
receivables 12.5% 11.1% 12.8% 11.7%
============ ============ ============ ============
June 30, 2007
-------------------------
AmeriCredit Total
Core
------------ ------------
Managed
receivables $12,816,253 $15,946,549
Loan delinquency:
(% of ending
managed
receivables)
31 - 60 days 5.7% 4.7%
Greater than
60 days 2.5 2.1
------------ ------------
Total 8.2% 6.8%
============ ============
Allowance as a
percentage of
on-book
receivables 5.9% 5.2%
============ ============
CONTACT: AMERICREDIT CORP. SOURCE: AmeriCredit |
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