Press Releases

AmeriCredit Reports Third Quarter Operating Results

  • 3rd Quarter earnings of $9.8 million, $0.07 per share
  • Allowance for loan losses increased to 7.7% of outstanding receivables
  • Total available liquidity of $409.4 million

FORT WORTH, Texas--(BUSINESS WIRE)--Apr. 23, 2009-- AMERICREDIT CORP. (NYSE: ACF) today announced net income of $9.8 million, or $0.07 per share, for its fiscal third quarter ended March 31, 2009, compared to earnings of $38.2 million, or $0.31 per share, for the same period a year earlier. For the nine months ended March 31, 2009, AmeriCredit reported a net loss of $17.4 million, or $0.14 per share, versus earnings of $80.9 million, or $0.65 per share, for the nine months ended March 31, 2008.

The allowance for loan losses as a percentage of finance receivables increased to 7.7% at March 31, 2009, from 7.1% at December 31, 2008 and 5.7% at March 31, 2008.

Originations were $210.1 million for the quarter ended March 31, 2009, compared to $1.3 billion for the same quarter last fiscal year. Originations for the nine months ended March 31, 2009, were $1.1 billion, compared to $5.5 billion for the same period a year earlier. Finance receivables totaled $11.9 billion at March 31, 2009, compared to $15.8 billion at March 31, 2008.

Annualized net charge-offs totaled 7.8% of average finance receivables for the three months ended March 31, 2009, compared to 6.6% for the three months ended March 31, 2008. For the nine months ended March 31, 2009, annualized net charge-offs were 8.2%, compared to 6.3% for the same period last year.

Finance receivables 31-to-60 days delinquent were 6.0% of the portfolio at March 31, 2009, compared to 5.3% at March 31, 2008. Accounts more than 60 days delinquent were 3.0% of the portfolio at March 31, 2009, compared to 2.3% a year ago.

The Company had total liquidity of $409.4 million at March 31, 2009, consisting of $120.9 million of unrestricted cash and approximately $288.5 million of available borrowing capacity on unpledged eligible receivables.

"Over the past year and a half, we have taken timely steps to preserve liquidity, strengthen our balance sheet and adjust our operating model to weather the economic downturn. This quarter, we solidified our funding platform by amending and extending our Master Warehouse Facility. We also reduced our leverage ratio and increased our allowance for loan losses, while protecting book value," said President and Chief Executive Officer Dan Berce. "We have positioned our business to withstand the economic cycle and take advantage of more favorable conditions in 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 approximately one million customers and $12 billion in 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, 2008. 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 the Company’s 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 Statements of Operations

(Unaudited, Dollars in Thousands, Except Per Share Amounts)

Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Revenue:
Finance charge income $ 452,186 $ 595,743 $ 1,483,719 $ 1,820,300
Other income 29,191 42,999 90,893 124,370
Gain on retirement of debt 14,442 - 53,309 -
495,819 638,742 1,627,921 1,944,670
Costs and expenses:
Operating expenses 76,278 100,016 244,877 308,065
Leased vehicles depreciation 13,694 9,679 36,765 24,112
Provision for loan losses 234,816 250,659 797,703 851,817
Interest expense 143,085 208,084 557,194 633,378
Restructuring charges 7,810 9,150 10,465 8,857
475,683 577,588 1,647,004 1,826,229
Income (loss) before income taxes 20,136 61,154 (19,083 ) 118,441
Income tax provision (benefit) 10,303 22,989 (1,698 ) 37,547

Net income (loss)

$ 9,833 $ 38,165 ($17,385 ) $ 80,894
Earnings (loss) per share:
Basic $ 0.07 $ 0.33 ($0.14) $ 0.70
Diluted $ 0.07 $ 0.31 ($0.14) $ 0.65
Weighted average shares 131,914,885 114,692,272 122,697,685 114,850,727
Weighted average shares and
assumed incremental shares 133,982,994 126,728,797 122,697,685 127,244,120

Consolidated Balance Sheets

(Unaudited, Dollars in Thousands)

March 31, June 30, March 31,
2009 2008 2008
Cash and cash equivalents $ 120,931 $ 433,493 $ 484,175
Finance receivables, net 10,983,331 14,030,299 14,920,808
Restricted cash – securitization notes payable 899,105 982,670 1,009,890
Restricted cash – credit facilities 234,054 259,699 254,857
Property and equipment, net 46,764 55,471 58,282
Leased vehicles, net 169,178 210,857 217,342
Deferred income taxes

122,262

317,319 274,657
Goodwill - - 212,595
Income taxes receivable

202,817

22,897 18,886
Investment in money market fund 13,232 - -
Other assets 196,216 234,505 167,387
Total assets $ 12,987,890 $ 16,547,210 $ 17,618,879
Credit facilities $ 1,782,716 $ 2,928,161 $ 3,418,571
Securitization notes payable 8,301,785 10,420,327 10,882,696
Senior notes 91,620 200,000 200,000
Convertible debt 486,150 750,000 750,000
Funding payable 6,097 21,519 28,834
Accrued taxes and expenses 158,115 216,387 207,669
Other liabilities 147,605 113,946 145,333
Total liabilities 10,974,088 14,650,340 15,633,103
Shareholders’ equity 2,013,802 1,896,870 1,985,776
Total liabilities and shareholders’ equity $ 12,987,890 $ 16,547,210 $ 17,618,879

Consolidated Statements of Cash Flows

(Unaudited, Dollars in Thousands)

Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Cash flows from operating activities:
Net income (loss) $ 9,833 $ 38,165 ($17,385) $ 80,894
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 25,200 21,223 83,291 58,683
Accretion and amortization of fees 3,879 9,528 15,903 20,120
Provision for loan losses 234,816 250,659 797,703 851,817
Deferred income taxes 177,379 (7,808 ) 221,025 (71,019 )
Stock-based compensation expense 3,691 2,850 11,238 15,402
Amortization of warrants 2,083 - 43,017 -
Gain on retirement of debt (14,442) - (54,064 ) -
Other (2,906 ) 5,013 3,641 5,898
Changes in assets and liabilities:
Other assets (135,613 ) 38,828 (195,918) (41,823)
Accrued taxes and expenses (37,939 ) (33,343 ) (45,988) 2,912
Net cash provided by operating activities 265,981 325,115 862,463 922,884
Cash flows from investing activities:
Purchase of receivables (198,588) (1,349,368 ) (1,112,143) (5,475,655)
Principal collections and recoveries on receivables 1,074,933 1,610,081 3,312,854 4,729,917
Net purchases of leased vehicles - (19,899 ) - (192,449 )
Investment in money market fund - - (115,821) -
Proceeds from money market fund 7,692 - 99,114 -
Net change in restricted cash and other

(53,497)

(103,282 )

132,038

(99,212)

Net cash provided (used) by investing activities 830,540 137,532 2,316,042 (1,037,399)
Cash flows from financing activities:
Net change in credit facilities (158,105) 942,518 (1,125,534) 876,422
Net change in securitization notes payable (953,056) (1,486,411) (2,111,096) (1,060,947)
Repurchase of common stock - - - (127,901)
Proceeds from issuance of common stock 4 505 1,271 14,051
Retirement of convertible debt (10,250) - (224,723) -
Other net changes (22,870) (1,165) (35,246) (13,924)
Net cash used by financing activities (1,144,277) (544,553) (3,495,328) (312,299)
Net decrease in cash and
cash equivalents (47,756) (81,906) (316,823) (426,814)
Effect of Canadian exchange rate changes on
cash and cash equivalents 1,997 (1,006) 4,261 685
Cash and cash equivalents at beginning of period 166,690 567,087 433,493 910,304
Cash and cash equivalents at end of period $ 120,931 $ 484,175 $ 120,931 $ 484,175

Other Financial Data

(Unaudited, Dollars in Thousands)

Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Origination volume $ 210,064 $ 1,327,112 $ 1,110,184 $ 5,513,048
Loans securitized - - 1,289,082 3,713,833
Average finance receivables $ 12,469,678 $ 16,187,675 $ 13,527,449 $ 16,261,870
March 31, June 30, March 31,
2009 2008 2008
Finance receivables:
Principal $ 11,901,323 $ 14,981,412 $ 15,820,314
Allowance for loan losses and

nonaccretable acquisition fees

(917,992) (951,113) (899,506)
$ 10,983,331 $ 14,030,299 $ 14,920,808
Allowance as a percent of ending
finance receivables 7.7% 6.3% 5.7%
March 31,

2009

June 30,

2008

March 31,

2008

Loan delinquency as a percent of
ending finance receivables:
31 - 60 days 6.0% 6.0% 5.3%
Greater than 60 days 3.0 2.9 2.3
Total 9.0% 8.9% 7.6%
Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Contracts receiving a payment
deferral as an average quarterly
percent of average finance
receivables 8.0% 5.8% 7.8% 6.2%
Net charge-offs $ 239,800 $ 266,371 $ 830,824 $ 772,546
Annualized net charge-offs as a
percent of average finance
receivables 7.8% 6.6% 8.2% 6.3%
Net recoveries as a
percent of gross repossession
charge-offs 39.0% 43.9% 39.2% 45.2%

Components of net margin:

Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Finance charge income $ 452,186 $ 595,743 $ 1,483,719 $ 1,820,300
Other income 29,191 42,999 90,893 124,370
Interest expense (143,085) (208,084) (557,194) (633,378)
Net margin $ 338,292 $ 430,658 $ 1,017,418 $ 1,311,292
Annualized net margin as a percent of average finance receivables:
Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Finance charge income 14.7% 14.8% 14.6% 14.9%
Other income 0.9 1.1 0.9 1.0
Interest expense (4.6) (5.2) (5.5) (5.2)

11.0% 10.7% 10.0% 10.7%
Three Months Ended Nine Months Ended
March 31, March 31,
2009 2008 2009 2008
Operating expenses $ 76,278 $ 100,016 $ 244,877 $ 308,065
Annualized operating expenses as a
percent of average finance
receivables 2.5% 2.5% 2.4% 2.5%

Source: AmeriCredit Corp.

AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394

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