• 4th quarter net loss of $150 million, $1.30 per share
  • Quarterly pre-tax income of $13 million excluding goodwill impairment and restructuring charge
  • Quarterly charge-offs declined sequentially to 5.9%
  • Unrestricted cash balance of $433 million<.li>

    FORT WORTH, Texas, August 6, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- AMERICREDIT CORP. (NYSE: ACF) today announced a net loss of $150 million, or $1.30 per share, for its fiscal fourth quarter ended June 30, 2008. AmeriCredit reported net income of $87 million, or $0.66 per share, for the same period a year earlier. For the fiscal year ended June 30, 2008, AmeriCredit reported a net loss of $69 million, or $0.60 per share, compared to net income of $360 million, or $2.73 per share, for the fiscal year ended June 30, 2007.

    Net 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)
                               ========================  ========================
    

    Contact:

    Caitlin DeYoung
    (817) 302-7394

    Deborah Vestal
    (817) 302-7210

    SOURCE AmeriCredit Corp.