• 3rd quarter earnings of $38 million, $0.31 per share
  • 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.