FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 23, 2006--AmeriCredit Corp. (NYSE:ACF):

  • Net income increased to $87 million, $0.59 per share
  • Credit losses of 5.9% improved from prior year
  • Loan originations increased 20% from the December 2004 quarter

AmeriCredit Corp. (NYSE:ACF) today announced net income of $87 million, or $0.59 per share, for its fiscal second quarter ended December 31, 2005. AmeriCredit reported net income of $65 million, or $0.39 per share, for the same period a year earlier. For the six months ended December 31, 2005, AmeriCredit reported net income of $141 million, or $0.93 per share, versus earnings of $133 million, or $0.80 per share, for the six months ended December 31, 2004.

Net income for the six months ended December 31, 2005, included a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc., which was offset by $6 million of after-tax charges ($10 million pre-tax), or $0.04 per share, related to Hurricane Katrina.

Automobile loan purchases increased to $1.34 billion for the second quarter of fiscal year 2006, compared to $1.12 billion in the same period a year earlier. Loan purchases for the six months ended December 31, 2005, were $2.86 billion compared to $2.21 billion for the same period last year. Managed auto receivables totaled $11.00 billion at December 31, 2005.

Annualized net charge-offs were 5.9% of average managed auto receivables for the December 2005 quarter compared to 7.0% for the December 2004 quarter. Annualized net charge-offs for the six months ended December 31, 2005, were 5.8% compared to 6.6% for the same period last year.

Managed auto receivables 31-to-60 days delinquent were 6.5% of the portfolio at December 31, 2005, compared to 6.6% at December 31, 2004. Accounts more than 60 days delinquent were 2.8% of the portfolio at December 31, 2005, compared to 2.6% at December 31, 2004.

Unrestricted cash totaled $586 million at December 31, 2005. During the December quarter, the Company purchased $195 million of its common stock. As of December 31, 2005, $794 million in aggregate repurchases have been made since the inception of the Company's stock repurchase program in April 2004. At December 31, 2005, the Company had $206 million remaining under its board approved stock repurchase plan. Shareholders' equity was $1.92 billion at December 31, 2005, resulting in a managed assets-to-equity ratio of 5.7.

"Historically, the December quarter is our most challenging quarter due to seasonal pressures in terms of credit performance and loan origination volume. We did see some seasonal impact, but overall our performance was very good," said AmeriCredit President and CEO Dan Berce. "Our credit performance was solid, our loan volume was right about where we thought it would be and net income increased 34% over the same quarter last year. Our balance sheet remains strong, and we believe we are well positioned for the second half of fiscal year 2006."

Regulation FD

Pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. The Company anticipates some risks and uncertainties with its business.

The following net income and earnings per share forecasts were revised from guidance provided on October 24, 2005, for the sale of a portion of the Company's investment in DealerTrack Holdings, Inc., and the effect of share repurchase activity through December 31, 2005, on net income and earnings per share.

Net income and EPS forecasts

                                               12 mos. ending 6/30/06
                                              ------------------------
Net income ($ millions)
  Previous                                                $257 - $287
  Revised                                                 $263 - $293

Earnings per share
  Previous                                              $1.67 - $1.85
  Revised                                               $1.78 - $1.96

The forecasts for fiscal year 2006 incorporate, but are not limited to, the following assumptions, which remained unchanged from October 24, 2005:

  • New loan volume of $5.8 to $6.2 billion;
  • Net interest margin of 13.0% to 13.5% of average on-book receivables;
  • Operating expenses of 2.8% to 3.2% of the managed portfolio;
  • Managed portfolio-level credit losses to average between 5.0% and 6.0% overall for fiscal year 2006, but varying seasonally by quarter; and
  • Annualized provision for loan losses to average on-book receivables to average in the high 5% to low 6% range, excluding the impact of Hurricane Katrina.

The forecasts for fiscal year 2006 earnings per share do not assume additional share repurchases after December 31, 2005, or any possible future disposition of all or a portion of the Company's investment in DealerTrack Holdings, Inc.

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 auto finance company. Using its branch network and strategic alliances with auto groups and banks, the Company purchases retail installment contracts entered into by auto dealers with consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has approximately one million customers and $11 billion in managed 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 period ended June 30, 2005. Such risks include -- but are not limited to -- variable economic conditions, adverse portfolio performance, volatile wholesale 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 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.


AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2005         2004         2005         2004
                   ------------ ------------ ------------ ------------
Revenue:
  Finance charge
   income             $394,075     $291,675     $767,811     $561,603
  Servicing income      21,445       40,372       46,786       99,729
  Other income          32,608       12,720       53,794       23,391
                   ------------ ------------ ------------ ------------
                       448,128      344,767      868,391      684,723
                   ------------ ------------ ------------ ------------
Costs and
 expenses:
  Operating
   expenses             83,919       80,001      161,784      154,002
  Provision for
   loan losses         125,865      100,197      291,725      198,913
  Interest expense     101,179       61,976      191,450      119,492
  Restructuring
   charges                  93          105          252          611
                   ------------ ------------ ------------ ------------
                       311,056      242,279      645,211      473,018
                   ------------ ------------ ------------ ------------

Income before
 income taxes          137,072      102,488      223,180      211,705

Income tax
 provision              50,498       37,921       82,573       78,331
                   ------------ ------------ ------------ ------------

  Net income           $86,574      $64,567     $140,607     $133,374
                   ============ ============ ============ ============

Earnings per
 share:
  Basic                  $0.65        $0.42        $1.02        $0.86
                   ============ ============ ============ ============

  Diluted                $0.59        $0.39        $0.93        $0.80
                   ============ ============ ============ ============

Weighted average
 shares            133,701,322  154,062,587  138,218,408  154,861,396
                   ============ ============ ============ ============

Weighted average
 shares and
 assumed
 incremental
 shares            148,325,483  168,617,089  152,958,115  169,486,045
                   ============ ============ ============ ============



Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                                December 31,   June 30,   December 31,
                                   2005         2005         2004
                                ------------ ------------ ------------

Cash and cash equivalents          $586,145     $663,501     $487,831
Finance receivables, net          9,264,566    8,297,750    7,162,368
Interest-only receivables from
 Trusts                               8,705       29,905       70,472
Investments in Trust receivables    138,682      239,446      373,895
Restricted cash -- gain on sale
 Trusts                             143,761      272,439      418,922
Restricted cash --
 securitization notes payable       698,321      633,900      489,406
Restricted cash -- warehouse
 credit facilities                  526,300      455,426       83,552
Property and equipment, net          59,332       92,000       90,513
Deferred income taxes                41,705       53,759       13,610
Other assets                        268,876      208,912      219,274
                                ------------ ------------ ------------
     Total assets               $11,736,393  $10,947,038   $9,409,843
                                ============ ============ ============

Warehouse credit facilities      $1,232,907     $990,974     $948,937
Securitization notes payable      7,875,604    7,166,028    5,720,631
Senior notes                        153,791      166,755      166,585
Convertible debt                    200,000      200,000      200,000
Funding payable                     225,801      158,210       78,652
Accrued taxes and expenses          114,756      133,736      128,205
Other liabilities                    13,254        9,419       18,543
                                ------------ ------------ ------------
     Total liabilities            9,816,113    8,825,122    7,261,553
                                ------------ ------------ ------------

Shareholders' equity              1,920,280    2,121,916    2,148,290
                                ------------ ------------ ------------
     Total liabilities and
      shareholders' equity      $11,736,393  $10,947,038   $9,409,843
                                ============ ============ ============



Consolidated Statements of Cash Flows(a)
(Unaudited, Dollars in Thousands)

                         Three Months Ended       Six Months Ended
                            December 31,            December 31,
                       ----------------------- -----------------------
                          2005        2004        2005        2004
                       ----------- ----------- ----------- -----------
                                   (Restated)              (Restated)
Cash flows from
 operating activities:
Net income                $86,574     $64,567    $140,607    $133,374
Adjustments to
 reconcile net income
 to net cash provided
 by operating
 activities:
   Depreciation and
    amortization            4,522      16,403      11,381      33,947
   Provision for loan
    losses                125,865     100,197     291,725     198,913
   Deferred income
    taxes                   7,025         671      (2,084)      2,139
   Accretion of
    present value
    discount              (10,995)    (14,544)    (22,658)    (41,670)
   Impairment of
    credit enhancement
    assets                     --       1,031         457       1,122
   Stock-based
    compensation
    expense                 5,095       2,089       9,298       2,718
   Other                   (9,282)       (336)     (9,993)        238
Changes in assets and
 liabilities:
   Other assets             1,544     (57,076)      9,910     (33,794)
   Accrued taxes and
    expenses              (30,903)    (35,750)    (19,047)    (30,954)
                       ----------- ----------- ----------- -----------
Net cash provided by
 operating activities     179,445      77,252     409,596     266,033
                       ----------- ----------- ----------- -----------

Cash flows from
 investing activities:
Purchases of
 receivables           (1,524,704) (1,223,133) (3,146,643) (2,401,555)
Principal collections
 and recoveries on
 receivables              976,241     728,964   1,952,779   1,434,791
Distributions from
 gain on sale Trusts,
 net of swap payments     110,655      98,804     253,673     199,086
Net sales (purchases)
 of property and
 equipment                 (1,347)     (1,027)     32,558      (1,662)
Net change in
 restricted cash and
 other                   (265,827)    453,606    (120,266)    146,300
                       ----------- ----------- ----------- -----------
Net cash (used)
 provided by investing
 activities              (704,982)     57,214  (1,027,899)   (623,040)
                       ----------- ----------- ----------- -----------

Cash flows from
 financing activities:
Net change in
 warehouse credit
 facilities               128,167     (72,595)    241,933     448,937
Net change in
 securitization notes     498,090     (16,993)    708,475     113,220
Net change in senior
 notes and other          (18,132)    (12,703)    (21,817)    (20,995)
Repurchase of common
 stock                   (194,815)    (76,314)   (398,929)   (144,145)
Net proceeds from
 issuance of common
 stock                      5,774       5,097       9,181      24,683
                       ----------- ----------- ----------- -----------
Net cash provided
 (used) by financing
 activities               419,084    (173,508)    538,843     421,700
                       ----------- ----------- ----------- -----------

Net (decrease)
 increase in cash and
 cash equivalents        (106,453)    (39,042)    (79,460)     64,693

Effect of Canadian
 exchange rate changes
 on cash and cash
 equivalents                  122         600       2,104       1,688

Cash and cash
 equivalents at
 beginning of period      692,476     526,273     663,501     421,450
                       ----------- ----------- ----------- -----------

Cash and cash
 equivalents at end of
 period                  $586,145    $487,831    $586,145    $487,831
                       =========== =========== =========== ===========

(a) On January 23, 2006, the Company will file a Form 8-K disclosing
    that the consolidated statements of cash flows have been restated
    to reclassify certain items including distributions from gain on
    sale Trusts, net of swap payments between Net cash provided by
    operating activities and Net cash (used) provided by investing
    activities.



Other Financial Data
(Unaudited, Dollars in Thousands)

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

Loan originations   $1,339,526   $1,120,252   $2,859,672   $2,205,038
Loans securitized    1,513,514      810,812    2,702,705    1,685,130

Average on-book
 receivables        $9,573,416   $7,394,990   $9,312,002   $7,174,033
Average gain on
 sale receivables    1,445,804    3,876,658    1,708,097    4,302,322
                   ------------ ------------ ------------ ------------
Average managed
 receivables       $11,019,220  $11,271,648  $11,020,099  $11,476,355
                   ============ ============ ============ ============

                   December 31,   June 30,   December 31,
                      2005         2005         2004
                   ------------ ------------ ------------

On-book
 receivables        $9,873,603   $8,838,968   $7,622,551
Gain on sale
 receivables         1,125,188    2,163,941    3,487,166
                   ------------ ------------ ------------
Managed
 receivables       $10,998,791  $11,002,909  $11,109,717
                   ============ ============ ============

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

Operating expenses     $83,919      $80,001     $161,784     $154,002
Operating expenses
 as a percent of
 average managed
 receivables               3.0%         2.8%         2.9%         2.7%
Tax rate                 36.84%       37.00%       37.00%       37.00%

                   December 31,   June 30,   December 31,
                       2005         2005         2004
                   ------------ ------------ ------------

Loan delinquency:
  On-book:
  (% of ending
   on-book
   receivables)
     31 - 60 days          6.0%         4.3%         5.0%
     Greater than
      60 days              2.5          1.8          1.9
                   ------------ ------------ ------------
        Total              8.5%         6.1%         6.9%
                   ============ ============ ============

  Gain on sale:
  (% of ending gain
   on sale
   receivables)
     31 - 60 days         11.1%         8.8%        10.2%
     Greater than
      60 days              5.2          3.9          4.0
                   ------------ ------------ ------------
        Total             16.3%        12.7%        14.2%
                   ============ ============ ============

  Total portfolio:
  (% of ending
   managed
   receivables)
     31  - 60 days         6.5%         5.2%         6.6%
     Greater than
      60 days              2.8          2.2          2.6
                   ------------ ------------ ------------
        Total              9.3%         7.4%         9.2%
                   ============ ============ ============

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2005         2004         2005         2004
                   ------------ ------------ ------------ ------------
Contracts
 receiving a
 payment deferral
 as an average
 quarterly
 percentage of
 average
 receivables
 outstanding:
  On-book (% of
   average on-book
   receivables)            6.4%         5.4%         6.4%         5.0%
                   ============ ============ ============ ============
  Gain on sale (%
   of average gain
   on sale
   receivables)            9.5%         9.9%        10.1%         9.7%
                   ============ ============ ============ ============
  Total portfolio
   (% of average
   managed
   receivables)            6.8%         6.9%         7.0%         6.8%
                   ============ ============ ============ ============

                               Three Months Ended   Six Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------
Net charge-offs:
  On-book                      $128,343   $93,954  $237,516  $168,935
  Gain on sale                   36,657   103,583    84,639   214,895
                               --------- --------- --------- ---------
                               $165,000  $197,537  $322,155  $383,830
                               ========= ========= ========= =========

Net charge-offs as a percent
 of average
  receivables:
  On-book                           5.3%      5.0%      5.1%      4.7%
                               ========= ========= ========= =========

  Gain on sale                     10.1%     10.6%      9.8%      9.9%
                               ========= ========= ========= =========

  Total portfolio                   5.9%      7.0%      5.8%      6.6%
                               ========= ========= ========= =========

Net recoveries as a percent of
 gross repossession charge-
 offs:
  On-book                          48.0%     44.1%     47.8%     44.7%
                               ========= ========= ========= =========

  Gain on sale                     40.8%     36.8%     40.3%     37.1%
                               ========= ========= ========= =========

  Total portfolio                  46.4%     40.3%     45.8%     40.4%
                               ========= ========= ========= =========

                                 December 31,  June 30,   December 31,
                                     2005        2005         2004
                                 ------------ ----------- ------------
On-book receivables:
  Principal                       $9,873,603  $8,838,968   $7,622,551
  Allowance for loan losses and
   nonaccretable acquisition
   fees                             (609,037)   (541,218)    (460,183)
                                 ------------ ----------- ------------
                                  $9,264,566  $8,297,750   $7,162,368
                                 ============ =========== ============

  Allowance as a percentage of
   on-book receivables                   6.2%        6.1%         6.0%
                                 ============ =========== ============


The Company's net margin as reflected on the consolidated statements
of income, excluding a $9 million pre-tax gain on the partial sale of
the Company's investment in DealerTrack Holdings, Inc., realized
during the three months ended December 31, 2005, is as follows:

                               Three Months Ended   Six Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------

Finance charge income          $394,075  $291,675  $767,811  $561,603
Other income                     23,761    12,720    44,947    23,391
Interest expense               (101,179)  (61,976) (191,450) (119,492)
                               --------- --------- --------- ---------
  Net margin                   $316,657  $242,419  $621,308  $465,502
                               ========= ========= ========= =========

                               Three Months Ended   Six Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------

Finance charge income              16.3%     15.6%     16.3%     15.5%
Other income                        1.0       0.7       1.0       0.7
Interest expense                   (4.2)     (3.3)     (4.1)     (3.3)
                               --------- --------- --------- ---------
  Net margin as a percent of
   average on-book receivables     13.1%     13.0%     13.2%     12.9%
                               ========= ========= ========= =========

CONTACT: AmeriCredit Corp., Fort Worth
Investor Relations
Caitlin DeYoung, 817-302-7394
or
Media Relations
John Hoffmann, 817-302-7627

SOURCE: AmeriCredit Corp.