GENERAL MOTORS FINANCIAL COMPANY, INC. 
By AMERICREDIT CORP. (NYSE: ACF) today announced net income of $86 million, or $0.61 per share, for its fiscal fourth quarter ended June 30, 2010. AmeriCredit reported net income of $32 million, or $0.24 per share, for the same period a year earlier. For the fiscal year ended June 30, 2010, AmeriCredit reported net income of $221 million, or $1.60 per share, versus a net loss of $11 million, or $0.09 per share, for the fiscal year ended June 30, 2009. Results for the three months and fiscal year ended June 30, 2009, were revised, from net income of $31 million, or $0.23 per share, and net income of $14 million, or $0.11 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changed the accounting for convertible bonds.
Originations were $906 million for the quarter ended June 30, 2010, compared to $624 million for the quarter ended March 31, 2010 and $175 million for the quarter ended June 30, 2009. Originations for the fiscal year ended June 30, 2010, were $2.1 billion, compared to $1.3 billion for the prior fiscal year. Finance receivables totaled $8.7 billion at June 30, 2010, compared to $8.8 billion at March 31, 2010 and $10.9 billion at June 30, 2009.
Annualized net charge-offs were 4.5% of average finance receivables for the quarter ended June 30, 2010, compared to 7.1% for the quarter ended June 30, 2009. For the fiscal year ended June 30, 2010, annualized net charge-offs were 7.4%, compared to 7.9% last fiscal year.
Finance receivables 31-to-60 days delinquent were 6.2% of the portfolio at June 30, 2010, compared to 6.9% at June 30, 2009. Accounts more than 60 days delinquent were 2.7% of the portfolio at June 30, 2010, compared to 3.5% a year ago.
The allowance for loan losses as a percentage of finance receivables was 6.6% at June 30, 2010, compared to 7.1% at March 31, 2010 and 8.2% at June 30, 2009.
The Company had total available liquidity of $772 million at June 30, 2010, consisting of $282 million of unrestricted cash and approximately $490 million of borrowing capacity on unpledged eligible receivables.
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 about 800,000 customers and approximately $9 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com.
On July 22, 2010, AmeriCredit and General Motors (GM) announced they have entered into a definitive agreement for GM to acquire AmeriCredit. Under the terms of the agreement, which has been approved by both companies' boards of directors, at closing, AmeriCredit shareholders will receive $24.50 in cash for each share of stock held as of the transaction closing date. The transaction is expected to close by the end of the fourth quarter of calendar 2010, pending certain closing conditions, including the approval of AmeriCredit shareholders.
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 (the ?SEC?) including the Company's annual report on Form 10-K for the year ended June 30, 2009. 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 loans, the continued availability of credit enhancement for securitization transactions on acceptable terms, fluctuating interest rates, competition, regulatory and legal changes, the high degree of risk associated with subprime borrowers, and exposure to litigation. The definitive agreement for GM to acquire AmeriCredit is subject to closing conditions and there is a risk that the transaction may not close. 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.
In connection with the proposed merger, AmeriCredit plans to file a proxy statement with the SEC. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE MERGER. Investors and security holders may obtain a free copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC's web site at http://www.sec.gov. Investors and security holders and other interested parties will also be able to obtain, free of charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Investor Relations, AmeriCredit Corp., 801 Cherry Street, Suite 3500, Fort Worth, Texas 76102, telephone (800) 644-2297, or from AmeriCredit's web site at www.AmeriCredit.com.
AmeriCredit and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from AmeriCredit's shareholders with respect to the merger. Information about AmeriCredit's directors and executive officers and their ownership of AmeriCredit's common stock is set forth in AmeriCredit's Proxy Statement on Schedule 14A filed on September 16, 2009. Shareholders and investors may obtain additional information regarding the interests of AmeriCredit and its directors and executive officers in the merger, which may be different than those of AmeriCredit's shareholders generally, by reading the proxy statement and other relevant documents regarding the merger, which will be filed with the SEC.
| AmeriCredit Corp. | |||||||||||||
| Consolidated Statements of Operations | |||||||||||||
| (Unaudited, Dollars in Thousands, Except Per Share Amounts) | |||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| (Revised) | (Revised) | ||||||||||||
| Revenue: | |||||||||||||
| Finance charge income | $ | 338,531 | $ | 418,965 | $ | 1,431,319 | $ | 1,902,684 | |||||
| Other income | 23,142 | 25,595 | 91,215 | 116,488 | |||||||||
| Gain on retirement of debt | - | 5,699 | 283 | 48,152 | |||||||||
| 361,673 | 450,259 | 1,522,817 | 2,067,324 | ||||||||||
| Costs and expenses: | |||||||||||||
| Operating expenses | 68,304 | 63,926 | 288,791 | 308,803 | |||||||||
| Leased vehicles expenses | 5,620 | 11,115 | 34,639 | 47,880 | |||||||||
| Provision for loan losses | 49,326 | 174,678 | 388,058 | 972,381 | |||||||||
| Interest expense | 98,730 | 152,894 | 457,222 | 726,560 | |||||||||
| Restructuring charges | 534 | 1,382 | 668 | 11,847 | |||||||||
| 222,514 | 403,995 | 1,169,378 | 2,067,471 | ||||||||||
| Income (loss) before income taxes | 139,159 | 46,264 | 353,439 | (147 | ) | ||||||||
| Income tax provision | 53,609 | 14,471 | 132,893 | 10,742 | |||||||||
| Net income (loss) | $ | 85,550 | $ | 31,793 | $ | 220,546 | $ | (10,889 | ) | ||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 0.64 | $ | 0.24 | $ | 1.65 | $ | (0.09 | ) | ||||
| Diluted | $ | 0.61 | $ | 0.24 | $ | 1.60 | $ | (0.09 | ) | ||||
| Weighted average shares | 134,618,012 | 132,890,596 | 133,845,238 | 125,239,241 | |||||||||
| Weighted average shares and | |||||||||||||
| assumed incremental shares | 139,787,408 | 133,523,867 | 138,179,945 | 125,239,241 | |||||||||
| Consolidated Balance Sheets | ||||||
| (Unaudited, Dollars in Thousands) | ||||||
| June 30, | June 30, | |||||
| 2010 | 2009 | |||||
| (Revised) | ||||||
| Cash and cash equivalents | $ | 282,273 | $ | 193,287 | ||
| Finance receivables, net | 8,160,208 | 10,037,329 | ||||
| Restricted cash – securitization notes payable | 930,155 | 851,606 | ||||
| Restricted cash – credit facilities | 142,725 | 195,079 | ||||
| Property and equipment, net | 37,734 | 44,195 | ||||
| Leased vehicles, net | 94,677 | 156,387 | ||||
| Deferred income taxes | 81,836 | 75,782 | ||||
| Income tax receivable | - | 197,579 | ||||
| Other assets | 151,425 | 207,083 | ||||
| Total assets | $ | 9,881,033 | $ | 11,958,327 | ||
| Credit facilities | $ | 598,946 | $ | 1,630,133 | ||
| Securitization notes payable | 6,108,976 | 7,426,687 | ||||
| Senior notes | 70,620 | 91,620 | ||||
| Convertible debt | 414,068 | 392,514 | ||||
| Accrued taxes and expenses | 210,013 | 157,640 | ||||
| Interest rate swap agreements | 70,421 | 131,885 | ||||
| Other liabilities | 7,565 | 20,540 | ||||
| Total liabilities | 7,480,609 | 9,851,019 | ||||
| Shareholders' equity (outstanding common shares of | 2,400,424 | 2,107,308 | ||||
| 134,939,850 and 133,171,366 respectively) | ||||||
| Total liabilities and shareholders' equity | $ | 9,881,033 | $ | 11,958,327 | ||
| Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited, Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||||||||||||||||||
| (Revised) | (Revised) | ||||||||||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 85,550 | $ | 31,793 | $ | 220,546 | $ | (10,889 | ) | ||||||||||||||||||||||||||||||||||||
| Adjustments to reconcile net income (loss) to | |||||||||||||||||||||||||||||||||||||||||||||
| net cash provided by operating activities: | |||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 17,047 | 26,153 | 79,044 | 109,008 | |||||||||||||||||||||||||||||||||||||||||
| Accretion and amortization of fees | 62 | 3,191 | 4,791 | 19,094 | |||||||||||||||||||||||||||||||||||||||||
| Provision for loan losses | 49,326 | 174,678 | 388,058 | Share
© Business Wire - 2010
General Motors Financial Company, Inc. (GM Financial) is a provider of automobile financing solutions. The Company finances new General Motors Company's (GM) vehicles, moderately-priced new vehicles from manufacturers, and later-model, low-mileage used vehicles. The Company conducts its business in two operating segments: the North America Segment and the International Segment. The Company's North America Segment includes operations in the United States and Canada. The Company's International Segment includes operations in Europe and Latin America. European countries include Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom. GM Financial includes both prime and sub-prime capabilities for consumer auto loans and leases and commercial lending capabilities for GM-franchised dealerships. The Company is a wholly owned captive finance subsidiary of General Motors (GM).
Sector
Consumer Lending
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