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Press ReleasesAmeriCredit Reports Fourth Quarter and Fiscal Year 2008 Operating ResultsNet loss for the quarter ended June 30, 2008, included a $135 million after-tax impairment charge ($213 million pre-tax), or $1.17 per share, related to the write-off of goodwill recorded in connection with the acquisitions of Long Beach Acceptance Corp. and Bay View Acceptance Corporation, and a $7 million after-tax restructuring charge ($11 million pre-tax), or $0.06 per share, related to changes in our lending programs and organizational structure. "Excluding the goodwill impairment and restructuring charge, we earned $13 million pre-tax for the quarter even after significantly increasing loan loss provisions to build our allowance for loan losses," said AmeriCredit Chief Financial Officer Chris Choate. The allowance for loan losses as a percentage of receivables increased to 6.3% at June 30, 2008, from 5.7% at March 31, 2008. Originations were $780 million for the quarter ended June 30, 2008, compared to $2.51 billion for the same quarter last year. Originations for the fiscal year ended June 30, 2008, were $6.29 billion, compared to $8.45 billion for the prior fiscal year. Managed receivables totaled $14.98 billion at June 30, 2008, compared to $15.95 billion at June 30, 2007. Annualized net charge-offs totaled 5.9% of average managed receivables for the quarter ended June 30, 2008, compared to 3.3% for the quarter ended June 30, 2007. For the fiscal year ended June 30, 2008, net charge-offs were 6.2%, compared to 4.7% last year. Managed auto receivables 31-to-60 days delinquent were 6.0% of the portfolio at June 30, 2008, compared to 4.7% at June 30, 2007. Accounts more than 60 days delinquent were 2.9% of the portfolio at June 30, 2008, compared to 2.1% a year ago. "We have taken proactive steps to conserve liquidity and position the business to withstand the weak macroeconomic environment and the dislocation in the capital markets," said AmeriCredit President and Chief Executive Officer Dan Berce. "Our goal as we manage through this challenging environment is to protect the value of our platform and position the franchise to provide shareholder value well into the future." 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 across the United States. AmeriCredit has over one million customers and approximately $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, 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 Statement of Operations
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Revenue:
Finance charge income $562,184 $591,792 $2,382,484 $2,142,470
Other income 36,216 33,247 159,779 136,093
Servicing income 12 354 819 9,363
Gain on sale of equity
investment - - - 51,997
----------- ----------- ----------- -----------
598,412 625,393 2,543,082 2,339,923
----------- ----------- ----------- -----------
Costs and expenses:
Operating expenses 89,749 106,681 397,814 398,434
Leased vehicles
depreciation 12,250 1,207 36,362 1,283
Provision for loan
losses 279,145 189,920 1,130,962 727,653
Impairment of goodwill 212,595 - 212,595 -
Interest expense 204,034 194,884 837,412 680,825
Restructuring charges 11,259 (1,482) 20,116 (339)
----------- ----------- ----------- -----------
809,032 491,210 2,635,261 1,807,856
----------- ----------- ----------- -----------
(Loss) income before
income taxes (210,620) 134,183 (92,179) 532,067
Income tax (benefit)
provision (60,407) 47,328 (22,860) 171,818
----------- ----------- ----------- -----------
Net (loss) income ($150,213) $86,855 ($69,319) $360,249
=========== =========== =========== ===========
(Loss) earnings per
share:
Basic $(1.30) $0.74 $(0.60) $3.02
=========== =========== =========== ===========
Diluted $(1.30) $0.66 $(0.60) $2.73
=========== =========== =========== ===========
Weighted average
shares 115,299,234 117,999,621 114,962,241 119,155,716
=========== =========== =========== ===========
Weighted average
shares and assumed
incremental shares 115,299,234 131,816,572 114,962,241 133,224,945
=========== =========== =========== ===========
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2008 2008 2007
----------- ----------- ------------
Cash and cash
equivalents $433,493 $484,175 $910,304
Finance receivables,
net 14,030,299 14,920,808 15,102,370
Restricted cash -
securitization notes
payable 982,670 1,009,890 1,014,353
Restricted cash -
credit facilities 259,699 254,857 166,884
Property and equipment,
net 55,471 58,282 58,572
Leased vehicles, net 210,857 217,342 33,968
Deferred income taxes 317,319 274,657 151,704
Goodwill - 212,595 208,435
Other assets 257,402 186,273 164,430
----------- ----------- ------------
Total assets $16,547,210 $17,618,879 $17,811,020
=========== =========== ===========
Credit facilities $2,928,161 $3,418,571 $2,541,702
Securitization notes
payable 10,420,327 10,882,696 11,939,447
Senior notes 200,000 200,000 200,000
Convertible debt 750,000 750,000 750,000
Funding payable 21,519 28,834 87,474
Accrued taxes and
expenses 216,387 207,669 199,059
Other liabilities 113,946 145,333 18,188
----------- ----------- -----------
Total liabilities 14,650,340 15,633,103 15,735,870
----------- ----------- -----------
Shareholders' equity 1,896,870 1,985,776 2,075,150
----------- ----------- -----------
Total liabilities
and shareholders'
equity $16,547,210 $17,618,879 $17,811,020
=========== =========== ===========
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Cash flows from
operating activities:
Net (loss) income $(150,213) $86,855 $(69,319) $360,249
Adjustments to
reconcile net (loss)
income to net cash
provided by
operating activities:
Depreciation and
amortization 28,796 12,712 87,479 36,737
Accretion and
amortization of fees 9,315 284 29,435 (16,982)
Provision for loan
losses 279,145 189,920 1,130,962 727,653
Deferred income taxes (66,930) (15,689) (137,949) (44,564)
Stock-based
compensation expense 2,543 5,855 17,945 20,230
Gain on sale of
available for sale
securities - - - (51,997)
Impairment of goodwill 212,595 - 212,595 -
Other 10,421 (1,566) 16,319 (4,241)
Changes in assets and
liabilities:
Other assets 3,299 3,139 (38,524) 30,313
Accrued taxes and
expenses 8,106 10,431 11,018 21,605
----------- ----------- ------------ -----------
Net cash provided by
operating activities 337,077 291,941 1,259,961 1,079,003
----------- ----------- ------------ -----------
Cash flows from investing
activities:
Purchase of receivables (784,543) (2,549,195) (6,260,198) (8,832,379)
Principal collections
and recoveries on
receivables 1,378,773 1,631,640 6,108,690 5,884,140
Distributions from gain
on sale Trusts - 314 7,466 93,271
Net purchases of
property and equipment (744) (2,333) (8,463) (11,604)
Net purchases of leased
vehicles (6,377) (24,961) (198,826) (28,427)
Proceeds from sale of
available for sale
securities - - - 62,961
Acquisition of LBAC,
net of cash acquired - - - (257,813)
Net change in restricted
cash and other (3,843) 155,066 (102,802) (54,218)
----------- ----------- ------------ -----------
Net cash provided (used)
by investing activities 583,266 (789,469) (454,133) (3,144,069)
----------- ----------- ------------ -----------
Cash flows from financing
activities:
Net change in credit
facilities (490,811) (463,075) 385,611 232,895
Net change in
securitization notes
payable (463,088) 1,053,048 (1,524,035) 1,824,679
Proceeds from issuance
of senior notes - 200,000 - 200,000
Net proceeds from
issuance of convertible
debt - - - 497,376
Repurchase of common
stock - (90) (127,901) (324,054)
Proceeds from issuance
of common stock 11,123 10,293 25,174 58,157
Other net changes (25,100) (9,038) (39,024) (24,309)
----------- ----------- ------------ -----------
Net cash (used) provided
by financing activities (967,876) 791,138 (1,280,175) 2,464,744
----------- ----------- ------------ -----------
Net (decrease) increase
in cash and cash
equivalents (47,533) 293,610 (474,347) 399,678
Effect of Canadian
exchange rate changes on
cash and cash equivalents (3,149) 1,299 (2,464) (2,614)
Cash and cash equivalents
at beginning of period 484,175 615,395 910,304 513,240
----------- ----------- ------------ -----------
Cash and cash equivalents
at end of period $433,493 $910,304 $433,493 $910,304
=========== =========== ============ ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Origination volume $780,446 $2,511,528 $6,293,494 $8,454,600
Loans securitized 920,250 2,764,683 4,634,083 7,659,927
Average on-book
receivables $15,446,441 $15,513,774 $16,059,129 $13,621,386
Average gain on sale
receivables - 26,483 7,107 105,831
----------- ----------- ------------ -----------
Average managed
receivables $15,446,441 $15,540,257 $16,066,236 $13,727,217
=========== =========== ============ ===========
June 30, March 31, June 30,
2008 2008 2007
----------- ----------- ------------
On-book receivables $14,981,412 $15,820,314 $15,922,458
Gain on sale
receivables - - 24,091
----------- ----------- ------------
Managed receivables $14,981,412 $15,820,314 $15,946,549
=========== =========== ============
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Operating expenses $89,749 $106,681 $397,814 $398,434
=========== =========== ============ ===========
Annualized operating
expenses as a percent
of average managed
receivables 2.3% 2.8% 2.5% 2.9%
=========== =========== ============ ===========
Tax rate 28.7% 35.3% 24.8% 32.3%
=========== =========== ============ ===========
June 30, March 31, June 30,
2008 2008 2007
----------- ----------- ------------
Loan delinquency:
On-book:
(% of ending on-book
receivables)
31 - 60 days 6.0% 5.3% 4.7%
Greater than 60 days 2.9 2.3 2.1
----------- ----------- ------------
Total 8.9% 7.6% 6.8%
=========== =========== ============
Managed portfolio:
(% of ending managed
receivables)
31 - 60 days 6.0% 5.3% 4.7%
Greater than 60 days 2.9 2.3 2.1
----------- ----------- ------------
Total 8.9% 7.6% 6.8%
=========== =========== ============
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
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) 6.5% 6.1% 6.3% 6.0%
=========== =========== ============ ===========
Managed portfolio (%
of average managed
receivables) 6.5% 6.0% 6.3% 6.0%
=========== =========== ============ ===========
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Net charge-offs:
On-book $227,538 $127,960 $1,000,046 $638,094
=========== =========== ============ ===========
Managed portfolio $227,538 $128,051 $1,000,084 $643,059
=========== =========== ============ ===========
Annualized net
charge-offs as a
percent of average
receivables:
On-book 5.9% 3.3% 6.2% 4.7%
=========== =========== ============ ===========
Managed portfolio 5.9% 3.3% 6.2% 4.7%
=========== =========== ============ ===========
Net recoveries as a
percent of gross
repossession
charge-offs:
On-book 43.6% 51.3% 44.8% 48.8%
=========== =========== ============ ===========
Managed portfolio 43.6% 51.3% 44.8% 48.8%
=========== =========== ============ ===========
June 30, March 31, June 30,
2008 2008 2007
----------- ----------- ------------
On-book receivables:
Principal $14,981,412 $15,820,314 $15,922,458
Allowance for loan
losses and
nonaccretable
acquisition fees (951,113) (899,506) (820,088)
----------- ----------- ------------
$14,030,299 $14,920,808 $15,102,370
=========== =========== ============
Allowance as a
percentage of
on-book receivables 6.3% 5.7% 5.2%
=========== =========== ============
The Company's net margin as reflected on the consolidated statement of
operations is as follows:
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Finance charge income $562,184 $591,792 $2,382,484 $2,142,470
Other income 36,216 33,247 159,779 136,093
Interest expense (204,034) (194,884) (837,412) (680,825)
----------- ----------- ------------ -----------
Net margin $394,366 $430,155 $1,704,851 $1,597,738
=========== =========== ============ ===========
Three Months Ended Fiscal Year Ended
June 30, June 30,
------------------------ -------------------------
2008 2007 2008 2007
----------- ----------- ------------ -----------
Finance charge income 14.6% 15.3% 14.8% 15.7%
Other income 0.9 0.8 1.0 1.0
Interest expense (5.3) (5.0) (5.2) (5.0)
----------- ----------- ------------ -----------
Annualized net margin
as a percent of
average on-book
receivables 10.2% 11.1% 10.6% 11.7%
=========== =========== ============ ===========
The following is a reconciliation of the Company's quarterly pre-tax income excluding goodwill impairment and restructuring charges to the Company's loss before income taxes as reflected on the Company's consolidated statement of operations (in thousands):
Three Months Ended Fiscal Year Ended
June 30, 2008 June 30, 2008
------------------------ ------------------------
Pre-tax income, excluding
goodwill impairment and
restructuring charges $13,234 $140,532
Less goodwill impairment (212,595) (212,595)
Less restructuring charges (11,259) (20,116)
------------------------ ------------------------
Loss before income taxes ($210,620) ($92,179)
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Contact: SOURCE AmeriCredit Corp. |
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