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Press ReleasesAmeriCredit Reports Third Quarter Operating Results FORT WORTH, Texas, April 24, 2008/PRNewswire-FirstCall/ -- AMERICREDIT CORP. (NYSE: ACF) today announced net income of $38 million, or $0.31 per share, for its fiscal third quarter ended March 31, 2008. AmeriCredit reported net income of $104 million, or $0.80 per share, for the same period a year earlier. For the nine months ended March 31, 2008, AmeriCredit reported net income of $81 million, or $0.65 per share, versus earnings of $273 million, or $2.06 per share, for the nine months ended March 31, 2007. Net income for the three months ended March 31, 2007, included a $10 million after-tax gain ($16 million pre-tax), or $0.08 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc., and a $21 million, or $0.16 per share, adjustment to reserves for contingent tax positions. Net income for the nine months ended March 31, 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. Automobile loan purchases were $1.33 billion for the three months ended March 31, 2008, compared to $2.52 billion for the same quarter last fiscal year. Loans purchased for the nine months ended March 31, 2008, were $5.51 billion compared to $5.94 billion for the same period a year earlier. Managed receivables totaled $15.82 billion at March 31, 2008, compared to $15.15 billion at March 31, 2007. Annualized net charge-offs totaled 6.6% of average managed receivables for the March 2008 quarter compared to 4.6% for the March 2007 quarter. For the nine months ended March 31, 2008, annualized net charge-offs were 6.3% compared to 5.2% for the same period last year. Managed receivables 31-to-60 days delinquent were 5.3% of the portfolio at March 31, 2008, compared to 4.1% at March 31, 2007. Accounts more than 60 days delinquent were 2.3% of the portfolio at March 31, 2008, compared to 1.5% a year ago. "Over the last several months, we have experienced modest seasonal improvement in credit performance, although credit performance remains worse year-over-year. Given the weaker credit performance and challenging capital markets, we have reduced our originations target for the calendar year to conserve liquidity and protect our franchise until economic conditions improve," said AmeriCredit President and Chief Executive Officer Dan Berce. AmeriCredit now expects an annual origination run rate of approximately $3 billion. 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 in the United States and Canada. AmeriCredit has over one million customers and more than $15 billion in managed auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit http://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, 2007. 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. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Revenue:
Finance charge income $595,743 $564,104 $1,820,300 $1,550,678
Other income 42,986 34,797 123,563 102,846
Servicing income 13 571 807 9,009
Gain on sale of equity
investment - 15,801 - 51,997
------------ ----------- ----------- -----------
638,742 615,273 1,944,670 1,714,530
------------ ----------- ----------- -----------
Costs and expenses:
Operating expenses 100,016 109,370 308,065 291,753
Leased vehicles
depreciation 9,679 76 24,112 76
Provision for loan losses 250,659 189,028 851,817 537,733
Interest expense 208,084 186,610 633,378 485,941
Restructuring charges 9,150 757 8,857 1,143
------------ ----------- ----------- -----------
577,588 485,841 1,826,229 1,316,646
------------ ----------- ----------- -----------
Income before income taxes 61,154 129,432 118,441 397,884
Income tax provision 22,989 25,700 37,547 124,490
------------ ----------- ----------- -----------
Net income $38,165 $103,732 $80,894 $273,394
============ =========== =========== ===========
Earnings per share:
Basic $0.33 $0.88 $ 0.70 $2.29
============ =========== =========== ===========
Diluted $0.31 $0.80 $ 0.65 $2.06
============ =========== =========== ===========
Weighted average shares 114,692,272 117,540,639 114,850,727 119,539,921
============ =========== =========== ===========
Weighted average shares
and assumed incremental
shares 126,728,797 131,166,057 127,244,120 133,693,242
============ =========== =========== ===========
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, June 30, March 31,
2008 2007 2007
------------ ----------- -----------
Cash and cash equivalents $484,175 $910,304 $615,395
Finance receivables, net 14,920,808 15,102,370 14,367,447
Restricted cash -
securitization notes
payable 1,009,890 1,014,353 1,144,173
Restricted cash - credit
facilities 254,857 166,884 194,693
Property and equipment, net 58,282 58,572 59,041
Leased vehicles, net 217,342 33,968 4,352
Deferred income taxes 274,657 151,704 153,521
Goodwill 212,595 208,435 200,497
Other assets 186,273 164,430 145,792
------------ ----------- -----------
Total assets $17,618,879 $17,811,020 $16,884,911
=========== =========== ===========
Credit facilities $3,418,571 $2,541,702 $3,004,774
Securitization notes
payable 10,882,696 11,939,447 10,883,909
Senior notes 200,000 200,000 -
Convertible debt 750,000 750,000 750,000
Funding payable 28,834 87,474 93,170
Accrued taxes and expenses 207,669 199,059 188,984
Other liabilities 145,333 18,188 14,404
------------ ----------- -----------
Total liabilities 15,633,103 15,735,870 14,935,241
------------ ----------- -----------
Shareholders' equity 1,985,776 2,075,150 1,949,670
------------ ----------- -----------
Total liabilities and
shareholders' equity $17,618,879 $17,811,020 $16,884,911
=========== =========== ===========
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Cash flows from operating
activities:
Net income $38,165 $103,732 $80,894 $273,394
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 21,223 4,528 58,683 24,025
Accretion and
amortization of fees 9,528 (3,307) 20,120 (17,266)
Provision for loan
losses 250,659 189,028 851,817 537,733
Deferred income taxes (7,808) (28,917) (71,019) (28,875)
Stock-based compensation
expense 2,850 5,054 15,402 14,375
Gain on sale of available
for sale securities - (15,801) - (51,997)
Other 1,834 516 3,663 2,576
Changes in assets and
liabilities:
Other assets 38,828 23,869 (41,823) 27,174
Accrued taxes and
expenses (30,164) 21,321 5,147 5,923
------------ ----------- ----------- -----------
Net cash provided by
operating activities 325,115 300,023 922,884 787,062
------------ ----------- ----------- -----------
Cash flows from investing
activities:
Purchase of
receivables (1,349,368) (2,542,356) (5,475,655) (6,283,184)
Principal collections
and recoveries on
receivables 1,610,081 1,621,219 4,729,917 4,252,500
Distributions from
gain on sale Trusts - 248 7,466 92,957
Net purchases of
property and equipment (1,001) (6,270) (7,719) (9,271)
Net purchases of leased
vehicles (19,899) (3,466) (192,449) (3,466)
Proceeds from sale of
available for sale
securities - 18,661 - 62,961
Acquisition of LBAC, net of
cash acquired - (257,813) - (257,813)
Net change in restricted
cash and other (102,281) (197,472) (98,959) (209,284)
------------ ----------- ----------- -----------
Net cash provided (used) by
investing activities 137,532 (1,367,249) (1,037,399) (2,354,600)
------------ ----------- ----------- -----------
Cash flows from
financing activities:
Net change in credit
facilities 942,518 401,371 876,422 695,970
Net change in
securitization
notes payable (1,486,411) 384,858 (1,060,947) 771,631
Proceeds from issuance
of convertible debt - - - 497,376
Repurchase of common stock - - (127,901) (323,964)
Proceeds from issuance
of common stock 505 4,638 14,051 47,864
Other net changes (1,165) (3,878) (13,924) (15,271)
------------ ----------- ----------- -----------
Net cash (used) provided
by financing activities (544,553) 786,989 (312,299) 1,673,606
------------ ----------- ----------- -----------
Net (decrease) increase
in cash and cash
equivalents (81,906) (280,237) (426,814) 106,068
Effect of Canadian exchange
rate changes on cash and
cash equivalents (1,006) (1,754) 685 (3,913)
Cash and cash equivalents
at beginning of period 567,087 897,386 910,304 513,240
------------ ----------- ----------- -----------
Cash and cash equivalents
at end of period $484,175 $615,395 $484,175 $615,395
============ =========== =========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Origination volume $1,327,112 $2,518,336 $5,513,048 $5,943,072
Loans securitized - 1,919,503 3,713,833 4,895,244
Average on-book
receivables $16,187,675 $14,669,061 $16,261,870 $12,993,241
Average gain on sale
receivables - 31,500 9,459 132,185
------------ ----------- ----------- -----------
Average managed
receivables $16,187,675 $14,700,561 $16,271,329 $13,125,426
============ =========== =========== ===========
March 31, June 30, March 31,
2008 2007 2007
------------ ----------- -----------
On-book receivables $15,820,314 $15,922,458 $15,123,907
Gain on sale receivables - 24,091 28,979
------------ ----------- -----------
Managed receivables $15,820,314 $15,946,549 $15,152,886
============ =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Operating expenses $100,016 $109,370 $308,065 $291,753
============ =========== =========== ===========
Annualized operating
expenses as a percent
of average managed
receivables 2.5% 3.0% 2.5% 3.0%
============ =========== =========== ===========
Tax rate 37.6% 19.9% 31.7% 31.3%
============ =========== =========== ===========
March 31, June 30, March 31,
2008 2007 2007
------------ ----------- -----------
Loan delinquency:
On-book:
(% of ending on-book
receivables)
31 - 60 days 5.3% 4.7% 4.1%
Greater than 60 days 2.3 2.1 1.5
------------ ----------- -----------
Total 7.6% 6.8% 5.6%
============ =========== ===========
Managed portfolio:
(% of ending managed
receivables)
31 - 60 days 5.3% 4.7% 4.1%
Greater than 60 days 2.3 2.1 1.5
------------ ----------- -----------
Total 7.6% 6.8% 5.6%
============ =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Contracts receiving
a payment deferral
as an average
quarterly percentage
of average receivables
outstanding:
On-book (% of average
on-book receivables) 5.8% 5.0% 6.2% 6.0%
============ =========== =========== ===========
Managed portfolio (% of
average managed
receivables) 5.8% 5.0% 6.2% 6.0%
============ =========== =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Net charge-offs:
On-book $266,371 $165,117 $772,508 $510,134
============ =========== =========== ===========
Managed portfolio $266,371 $165,175 $772,546 $515,008
============ =========== =========== ===========
Annualized net charge-offs
as a percent of average
receivables:
On-book 6.6% 4.6% 6.3% 5.2%
============ =========== =========== ===========
Managed portfolio 6.6% 4.6% 6.3% 5.2%
============ =========== =========== ===========
Annualized net recoveries as a
percent of gross repossession
charge-offs:
On-book 43.9% 49.5% 45.2% 49.0%
============ =========== =========== ===========
Managed portfolio 43.9% 49.5% 45.2% 49.0%
============ =========== =========== ===========
March 31, June 30, March 31,
2008 2007 2007
------------ ----------- -----------
On-book receivables:
Principal $15,820,314 $15,922,458 $15,123,907
Allowance for loan
losses and
nonaccretable
acquisition fees (899,506) (820,088) (756,460)
------------ ----------- -----------
$14,920,808 $15,102,370 $14,367,447
============ =========== ===========
Allowance as a
percentage of
on-book receivables 5.7% 5.2% 5.0%
============ =========== ===========
The Company's net margin as reflected on the consolidated income
statements is as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Finance charge income $595,743 $564,104 $1,820,300 $1,550,678
Other income 42,986 34,797 123,563 102,846
Interest expense (208,084) (186,610) (633,378) (485,941)
------------ ----------- ----------- -----------
Net margin $430,645 $ 412,291 $1,310,485 $1,167,583
============ =========== =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -----------------------
2008 2007 2008 2007
------------ ----------- ----------- -----------
Finance charge income 14.8% 15.6% 14.9% 15.9%
Other income 1.1 1.0 1.0 1.1
Interest expense (5.2) (5.2) (5.2) (5.0)
------------ ----------- ----------- -----------
Annualized net margin as a
percent of average on-book
receivables 10.7% 11.4% 10.7% 12.0%
============ =========== =========== ===========
Contact:
Investor Relations Media Relations
Caitlin DeYoung John Hoffmann
(817) 302-7394 (817) 302-7627
SOURCE AmeriCredit Corp. CONTACT: Investor Relations, Caitlin DeYoung, +1-817-302-7394, or Media Relations, John Hoffmann, +1-817-302-7627, both of AmeriCredit Corp. |
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