- 1st Quarter net loss of $1.7 million, $0.01 per share
- Pre-tax earnings of $412,000
- Allowance for loan losses increased to 6.8% of outstanding
receivables
FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 27, 2008--AMERICREDIT
CORP. (NYSE: ACF) today announced a net loss of $1.7 million, or $0.01
per share, for its fiscal first quarter ended September 30, 2008.
AmeriCredit reported net income of $61.8 million, or $0.49 per share,
for the same period a year earlier.
The allowance for loan losses as a percentage of finance
receivables increased to 6.8% at September 30, 2008, from 6.3% at June
30, 2008.
Originations were $579.3 million for the quarter ended September
30, 2008, compared to $2.4 billion for the same quarter last fiscal
year. Finance receivables totaled $14.1 billion at September 30, 2008,
compared to $16.4 billion at September 30, 2007.
Annualized net charge-offs totaled 7.3% of average finance
receivables for the quarter ended September 30, 2008, compared to 5.4%
for the quarter ended September 30, 2007.
Finance receivables 31-to-60 days delinquent were 7.4% of the
portfolio at September 30, 2008, compared to 5.5% at September 30,
2007. Accounts more than 60 days delinquent were 3.6% of the
portfolio, compared to 2.6% a year ago.
Unrestricted cash was $243.8 million at September 30, 2008,
excluding $112.3 million of investment in The Reserve Primary Money
Market Fund, which has been reclassified to Investment in money market
fund due to the fund's temporary suspension of distributions. The
Company has additional liquidity of approximately $150 million from
borrowing capacity on unpledged eligible receivables at September 30,
2008. During the September 2008 quarter, AmeriCredit retired $114.7
million of its 1.75% convertible notes. Book value was $16.49 per
share at September 30, 2008.
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 $14 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 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
September 30,
-----------------------
2008 2007
----------- -----------
Revenue:
Finance charge income $533,973 $611,858
Other income 32,070 40,816
----------- -----------
566,043 652,674
----------- -----------
Costs and expenses:
Operating expenses 84,255 104,965
Leased vehicles depreciation 10,914 5,585
Provision for loan losses 274,865 244,645
Interest expense 195,046 211,261
Restructuring charges 551 (130)
----------- -----------
565,631 566,326
----------- -----------
Income before income taxes 412 86,348
Income tax provision 2,074 24,529
----------- -----------
Net (loss) income ($1,662) $61,819
=========== ===========
(Loss) earnings per share:
Basic ($0.01) $ 0.53
=========== ===========
Diluted ($0.01) $0.49
=========== ===========
Weighted average shares 116,271,119 115,550,318
=========== ===========
Weighted average shares and
assumed incremental shares 116,271,119 128,111,826
=========== ===========
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
September 30, June 30, September 30,
2008 2008 2007
------------- ------------- -------------
Cash and cash equivalents $ 243,752 $ 433,493 $ 637,070
Finance receivables, net 13,102,726 14,030,299 15,532,786
Restricted cash -
securitization notes
payable 915,694 982,670 994,813
Restricted cash - credit
facilities 190,619 259,699 374,378
Property and equipment,
net 52,992 55,471 58,717
Leased vehicles, net 198,606 210,857 169,701
Deferred income taxes 317,444 317,319 239,812
Goodwill - - 209,417
Investment in money market
fund 112,346 - -
Other assets 237,224 257,402 211,529
------------- ------------- -------------
Total assets $15,371,403 $16,547,210 $18,428,223
============= ============= =============
Credit facilities $ 2,990,427 $ 2,928,161 $ 2,212,780
Securitization notes
payable 9,289,957 10,420,327 12,881,613
Senior notes 200,000 200,000 200,000
Convertible debt 635,349 750,000 750,000
Funding payable 16,051 21,519 70,438
Accrued taxes and expenses 217,631 216,387 265,435
Other liabilities 104,555 113,946 37,564
------------- ------------- -------------
Total liabilities 13,453,970 14,650,340 16,417,830
------------- ------------- -------------
Shareholders' equity 1,917,433 1,896,870 2,010,393
------------- ------------- -------------
Total liabilities and
shareholders' equity $15,371,403 $16,547,210 $18,428,223
============= ============= =============
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
-----------------------
2008 2007
----------- -----------
Cash flows from operating activities:
Net (loss) income ($1,662) $61,819
Adjustments to reconcile net (loss) income
to
net cash provided by operating activities:
Depreciation and amortization 25,885 16,955
Accretion and amortization of fees 6,995 4,688
Provision for loan losses 274,865 244,645
Deferred income taxes (3,166) 24,529
Stock-based compensation expense 3,894 7,032
Amortization of warrants 12,348 -
Other 2,676 438
Changes in assets and liabilities:
Other assets 1,417 (39,057)
Accrued taxes and expenses 6,960 (40,810)
----------- -----------
Net cash provided by operating activities 330,212 280,239
----------- -----------
Cash flows from investing activities:
Purchase of receivables (586,647) (2,290,411)
Principal collections and recoveries on
receivables 1,213,444 1,585,813
Purchases of property and equipment (855) (2,877)
Net purchases of leased vehicles - (131,713)
Investment in money market fund (115,821) -
Net change in restricted cash and other 153,558 (196,071)
----------- -----------
Net cash provided (used) by investing
activities 663,679 (1,035,259)
----------- -----------
Cash flows from financing activities:
Net change in credit facilities 67,013 (333,457)
Net change in securitization notes payable (1,130,862) 940,327
Repurchase of common stock - (127,901)
Proceeds from issuance of common stock 14 10,199
Retirement of convertible debt (114,048) -
Other net changes (6,348) (9,064)
----------- -----------
Net cash (used) provided by financing
activities (1,184,231) 480,104
----------- -----------
Net decrease in cash and
cash equivalents (190,340) (274,916)
Effect of Canadian exchange rate changes on
cash and cash equivalents 599 1,682
Cash and cash equivalents at beginning of
period 433,493 910,304
----------- -----------
Cash and cash equivalents at end of period $243,752 $637,070
=========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
----------------------------
2008 2007
------------- -------------
Origination volume $579,290 $2,381,217
Loans securitized - 2,688,182
Average finance
receivables $14,544,922 $16,188,641
September 30, June 30, September 30,
2008 2008 2007
------------- ------------- -------------
Finance receivables:
Principal $14,062,845 $14,981,412 $16,377,528
Allowance for loan
losses and
nonaccretable
acquisition fees (960,119) (951,113) (844,742)
------------- ------------- -------------
$13,102,726 $14,030,299 $15,532,786
============= ============= =============
Allowance as a
percentage of
finance
receivables 6.8% 6.3% 5.2%
============= ============= =============
September 30, June 30, September 30,
2008 2008 2007
------------- ------------- -------------
Loan delinquency as % of
ending
finance receivables:
31 - 60 days 7.4% 6.0% 5.5%
Greater than 60
days 3.6 2.9 2.6
------------- ------------- -------------
Total 11.0% 8.9% 8.1%
============= ============= =============
Three Months Ended
September 30,
----------------------------
2008 2007
------------- -------------
Contracts receiving a
payment
deferral as an average
quarterly
percentage of average
finance
receivables outstanding 7.3% 6.0%
Net charge-offs $265,859 $220,013
Annualized net charge-offs
as a
percent of average
finance
receivables 7.3% 5.4%
Net recoveries as a
percent of gross
repossession
charge-offs 41.6% 48.8%
Components of net margin:
Three Months Ended
September 30,
----------------------------
2008 2007
------------- -------------
Finance charge income $533,973 $611,858
Other income 32,070 40,816
Interest expense (195,046) (211,261)
------------- -------------
Net margin $370,997 $441,413
============= =============
Annualized net margin as a
percentage of average
finance receivables:
Three Months Ended
September 30,
----------------------------
2008 2007
------------- -------------
Finance charge income 14.5% 15.0%
Other income 0.9 1.0
Interest expense (5.3) (5.2)
------------- -------------
Net margin 10.1% 10.8%
============= =============
Three Months Ended
September 30,
----------------------------
2008 2007
------------- -------------
Operating expenses $84,255 $104,965
============= =============
Annualized operating
expenses as a
percent of average
finance
receivables 2.3% 2.6%
============= =============
CONTACT: AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394
SOURCE: AmeriCredit Corp.