FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 7, 2006--AMERICREDIT CORP. (NYSE:ACF):

  • 4th Quarter earnings of $79 million, $0.55 per share
  • Loan originations increased to $1.73 billion
  • Charge-offs declined to 3.9%
  • FY07 earnings per share guidance updated

AMERICREDIT CORP. (NYSE:ACF) today announced net income of $79 million, or $0.55 per share, for its fiscal fourth quarter ended June 30, 2006. AmeriCredit reported net income of $77 million, or $0.48 per share, for the same period a year earlier. Net income for the quarter ended June 30, 2006, included a $6 million after-tax loss ($9 million pre-tax), or $0.04 per share, related to the redemption of the 9 1/4 Senior Notes due in May 2009. For the fiscal year ended June 30, 2006, AmeriCredit reported net income of $306 million, or $2.08 per share, versus earnings of $286 million, or $1.73 per share, for the fiscal year ended June 30, 2005.

Automobile loan purchases increased to $1.73 billion for the fourth quarter of fiscal year 2006, compared to $1.45 billion for the June 2005 quarter. Loan purchases for the fiscal year ended June 30, 2006, were $6.21 billion compared to $5.03 billion for fiscal year 2005. Managed auto receivables totaled $12.20 billion at June 30, 2006.

Annualized net charge-offs totaled 3.9% of average managed auto receivables for the June 2006 quarter compared to 4.2% for the June 2005 quarter. Net charge-offs for the fiscal year ended June 30, 2006, were 5.2% compared to 5.7% for fiscal year 2005.

Managed auto receivables 31-to-60 days delinquent were 5.1% of the portfolio at June 30, 2006, compared to 5.2% at June 30, 2005. Accounts more than 60 days delinquent were 2.1% of the portfolio at June 30, 2006, compared to 2.2% at June 30, 2005.

"AmeriCredit experienced a strong finish to fiscal year 2006 as loan originations increased and charge-offs declined this quarter," said President and Chief Executive Officer Dan Berce. "We continued executing our growth strategies, and we are still benefiting from a favorable economic environment."

Unrestricted cash totaled $513 million at June 30, 2006. During the June 2006 quarter, the Company repurchased $106 million of its common stock. The Company has repurchased a total of $923 million of its common stock since inception of its stock repurchase program in April 2004. At June 30, 2006, the Company had $77 million remaining under its board approved stock repurchase plan. Shareholders' equity was $2.01 billion at June 30, 2006, resulting in a managed assets-to-equity ratio of 6.1 at June 30, 2006.

"During the June quarter, our primary uses of excess cash were the repurchase of additional shares of stock, the redemption of outstanding unsecured debt, and the acquisition of Bay View Acceptance Corporation," said Chief Financial Officer Chris Choate. "Growth in our managed receivables combined with deployment of excess capital helped us improve our return on equity to 15.3% in fiscal year 2006 compared to 13.4% last year."

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 forecast remains unchanged from guidance provided on April 24, 2006. The earnings per share forecast has been updated to reflect stock repurchased through June 30, 2006.

Net income and EPS forecasts

                                                   Fiscal year ending
                                                     June 30, 2007
                                                  --------------------
Net income ($ millions)                                   $305 - $335

Earnings per share                                      $2.15 - $2.35

The forecasts include the results of Bay View Acceptance Corporation for fiscal year 2007. The Company completed this acquisition on May 1, 2006. Bay View Acceptance Corporation provides specialized auto financing options to customers with prime credit scores. Therefore, its net interest margin and credit losses are historically lower than AmeriCredit's. The forecasts for fiscal year 2007 incorporate, but are not limited to, the following assumptions:

  • New loan origination volume of $7.2 to $7.8 billion;
  • Net interest margin of 12.0 to 13.0 percent of average receivables;
  • Operating expenses of 2.8 to 3.2 percent of the portfolio;
  • Net charge-offs to average between 4.5 and 5.5 percent overall for the fiscal year, but varying seasonally by quarter; and
  • Annualized provision for loan losses as a percent of average receivables to range between 5.0 and 6.0 percent.

These forecasts do not include any future share repurchase activity or future disposition of all or a portion of the Company's investment in DealerTrack.

AmeriCredit will host a conference call for analysts and investors today at 5:30 p.m. Eastern Daylight 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 and directly to consumers in the United States and Canada. AmeriCredit has approximately one million customers and $12 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/A for the year 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         Fiscal Year Ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------
Revenue:
  Finance charge
   income             $458,874     $344,224   $1,641,125   $1,217,696
  Servicing income      13,417       33,026       75,209      177,585
  Other income          15,552       16,949       95,004       55,565
                   ------------ ------------ ------------ ------------
                       487,843      394,199    1,811,338    1,450,846
                   ------------ ------------ ------------ ------------
Costs and
 expenses:
  Operating
   expenses             84,683       77,825      336,153      312,637
  Provision for
   loan losses         157,051      114,792      567,545      418,711
  Interest expense     120,804       79,756      419,360      264,276
  Restructuring
   charges                 919           82        3,045        2,823
                   ------------ ------------ ------------ ------------
                       363,457      272,455    1,326,103      998,447
                   ------------ ------------ ------------ ------------

Income before
 income taxes          124,386      121,744      485,235      452,399

Income tax
 provision              45,542       44,802      179,052      166,490
                   ------------ ------------ ------------ ------------

  Net income           $78,844      $76,942     $306,183     $285,909
                   ============ ============ ============ ============

Earnings per
 share:
  Basic                  $0.61        $0.52        $2.29        $1.88
                   ============ ============ ============ ============

  Diluted                $0.55        $0.48        $2.08        $1.73
                   ============ ============ ============ ============

Weighted average
 shares            129,139,155  146,885,157  133,837,116  152,184,740
                   ============ ============ ============ ============

Weighted average
 shares and
 assumed
 incremental
 shares            144,286,513  162,669,064  148,824,916  167,242,658
                   ============ ============ ============ ============



Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                                  June 30,    March 31,     June 30,
                                   2006         2006         2005
                                ------------ ------------ ------------

Cash and cash equivalents          $513,240     $700,800     $663,501
Finance receivables, net         11,097,008    9,770,018    8,297,750
Interest-only receivables from
 Trusts                               3,645        5,891       29,905
Investments in Trust
 receivables                         41,018       98,374      239,446
Restricted cash - gain on sale
 Trusts                              59,961       98,943      272,439
Restricted cash -
 securitization notes payable       860,935      803,110      633,900
Restricted cash - warehouse
 credit facilities                  140,042      101,981      455,426
Property and equipment, net          57,225       58,343       92,000
Deferred income taxes                78,789       60,795       53,759
Other assets                        216,002      209,981      208,912
                                ------------ ------------ ------------
  Total assets                  $13,067,865  $11,908,236  $10,947,038
                                ============ ============ ============

Warehouse credit facilities      $2,106,282   $1,435,134     $990,974
Securitization notes payable      8,518,849    7,867,074    7,166,028
Senior notes                             --      153,869      166,755
Convertible debt                    200,000      200,000      200,000
Funding payable                      54,623       54,559      158,210
Accrued taxes and expenses          155,799      160,899      133,736
Other liabilities                    23,426       20,998        9,419
                                ------------ ------------ ------------
  Total liabilities              11,058,979    9,892,533    8,825,122
                                ------------ ------------ ------------

Shareholders' equity              2,008,886    2,015,703    2,121,916
                                ------------ ------------ ------------
  Total liabilities and
   shareholders' equity         $13,067,865  $11,908,236  $10,947,038
                                ============ ============ ============



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

                         Three Months Ended       Fiscal Year Ended
                              June 30,                June 30,
                       ----------------------- -----------------------
                          2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
Cash flows from
 operating activities:
Net income                $78,844     $76,942    $306,183    $285,909
Adjustments to
 reconcile net income
 to net cash provided
 by operating
 activities:
  Depreciation and
   amortization             7,669      10,133      35,304      38,267
  Accretion and
   amortization of
   loan fees               (7,527)        347     (20,062)     16,962
  Provision for loan
   losses                 157,051     114,792     567,545     418,711
  Deferred income
   taxes                  (15,293)    (38,412)    (37,405)    (31,220)
  Accretion of present
   value discount          (9,466)    (14,693)    (40,153)    (78,066)
  Impairment of credit
   enhancement assets          --          --         457       1,122
  Stock-based
   compensation
   expense                  3,896       5,114      16,586      11,468
  Other                     2,539        (153)     (6,451)        214
Changes in assets and
 liabilities:
  Other assets             34,355     (21,712)    117,650     (25,578)
  Accrued taxes and
   expenses                (6,785)      7,083      21,677     (23,827)
                       ----------- ----------- ----------- -----------
Net cash provided by
 operating activities     245,283     139,441     961,331     613,962
                       ----------- ----------- ----------- -----------

Cash flows from
 investing activities:
Purchase of
 receivables           (2,053,660) (1,583,509) (7,147,471) (5,447,444)
Principal collections
 and recoveries on
 receivables            1,263,928     924,877   4,373,044   3,202,788
Distributions from
 gain on sale Trusts,
 net of swap payments     108,395     201,705     454,531     547,011
Net (purchases) sales
 of property and
 equipment                 (1,320)     (1,169)     29,234      (7,676)
Acquisition of Bay
 View, net of cash
 acquired                 (61,764)         --     (61,764)         --
Net change in
 restricted cash and
 other                    (64,039)   (461,070)    135,787    (363,585)
                       ----------- ----------- ----------- -----------
Net cash used by
 investing activities    (808,460)   (919,166) (2,216,639) (2,068,906)
                       ----------- ----------- ----------- -----------

Cash flows from
 financing activities:
Net change in
 warehouse credit
 facilities               443,270    (270,283)    887,430     490,974
Net change in
 securitization notes
 payable                  184,085   1,292,565     884,069   1,559,762
Net change in senior
 notes and other         (155,849)     (8,584)   (174,573)    (34,853)
Repurchase of common
 stock                   (106,024)   (161,676)   (528,070)   (362,570)
Proceeds from issuance
 of common stock            8,319      11,421      32,467      42,201
                       ----------- ----------- ----------- -----------
Net cash provided by
 financing activities     373,801     863,443   1,101,323   1,695,514
                       ----------- ----------- ----------- -----------

Net (decrease)
 increase in cash and
 cash equivalents        (189,376)     83,718    (153,985)    240,570

Effect of Canadian
 exchange rate changes
 on cash and cash
 equivalents                1,816        (214)      3,724       1,481

Cash and cash
 equivalents at
 beginning of period      700,800     579,997     663,501     421,450
                       ----------- ----------- ----------- -----------

Cash and cash
 equivalents at end of
 period                  $513,240    $663,501    $513,240    $663,501
                       =========== =========== =========== ===========



Other Financial Data
(Unaudited, Dollars in Thousands)

                      Three Months Ended         Fiscal Year Ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Loan originations   $1,734,065   $1,452,275   $6,208,004   $5,031,325
Loans securitized    1,297,300    2,255,216    5,000,007    4,913,319

Average on-book
 receivables       $11,248,944   $8,439,498   $9,993,061   $7,653,875
Average gain on
 sale receivables      560,251    2,537,068    1,223,469    3,586,581
                   ------------ ------------ ------------ ------------
Average managed
 receivables       $11,809,195  $10,976,566  $11,216,530  $11,240,456
                   ============ ============ ============ ============

                    June 30,     March 31,    June 30,
                       2006         2006         2005
                   ------------ ------------ ------------

On-book
 receivables       $11,775,665  $10,382,505   $8,838,968
Gain on sale
 receivables           421,037      750,637    2,163,941
                   ------------ ------------ ------------
Managed
 receivables       $12,196,702  $11,133,142  $11,002,909
                   ============ ============ ============


                      Three Months Ended         Fiscal Year Ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Operating expenses     $84,683      $77,825     $336,153     $312,637
Operating expenses
 as a percent of
 average managed
 receivables               2.9%         2.8%         3.0%         2.8%
Tax rate                 36.61%       36.80%       36.90%       36.80%


                                         June 30,  March 31, June 30,
                                           2006      2006      2005
                                         --------- --------- ---------

Loan delinquency:
  On-book:
  (% of ending on-book receivables)
    31 - 60 days                              5.0%      4.5%      4.3%
    Greater than 60 days                      2.0       1.5       1.8
                                         --------- --------- ---------
      Total                                   7.0%      6.0%      6.1%
                                         ========= ========= =========

  Gain on sale:
  (% of ending gain on sale receivables)
    31 - 60 days                              9.2%      7.0%      8.8%
    Greater than 60 days                      3.8       3.3       3.9
                                         --------- --------- ---------
      Total                                  13.0%     10.3%     12.7%
                                         ========= ========= =========

  Total portfolio:
  (% of ending managed receivables)
    31  - 60 days                             5.1%      4.7%      5.2%
    Greater than 60 days                      2.1       1.6       2.2
                                         --------- --------- ---------
      Total                                   7.2%      6.3%      7.4%
                                         ========= ========= =========


                                        Three Months    Fiscal Year
                                            Ended           Ended
                                          June 30,        June 30,
                                       --------------- ---------------
                                        2006    2005    2006    2005
                                       ------- ------- ------- -------
Contracts receiving a payment deferral
 as an average quarterly percentage of
 average receivables outstanding:
  On-book (% of average on-book
   receivables)                           6.2%    5.2%    6.1%    5.0%
                                       ======= ======= ======= =======
  Gain on sale (% of average gain on
   sale receivables)                      6.7%    9.0%    8.6%    9.4%
                                       ======= ======= ======= =======
  Total portfolio (% of average
   managed receivables)                   6.2%    6.1%    6.4%    6.4%
                                       ======= ======= ======= =======


                               Three Months Ended   Fiscal Year Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Net charge-offs:
  On-book                      $107,751   $71,805  $467,386  $320,037
  Gain on sale                    7,584    44,070   111,243   326,114
                               --------- --------- --------- ---------
                               $115,335  $115,875  $578,629  $646,151
                               ========= ========= ========= =========

Net charge-offs as a percent
 of average receivables:
  On-book                           3.8%      3.4%      4.7%      4.2%
                               ========= ========= ========= =========

  Gain on sale                      5.4%      7.0%      9.1%      9.1%
                               ========= ========= ========= =========

  Total portfolio                   3.9%      4.2%      5.2%      5.7%
                               ========= ========= ========= =========

Net recoveries as a percent of
 gross repossession charge-
 offs:
  On-book                          50.3%     51.4%     49.3%     47.1%
                               ========= ========= ========= =========

  Gain on sale                     45.8%     43.7%     41.8%     39.2%
                               ========= ========= ========= =========

  Total portfolio                  49.9%     48.3%     47.8%     43.1%
                               ========= ========= ========= =========


                                   June 30,    March 31,    June 30,
                                     2006         2006        2005
                                 ------------ ------------ -----------
On-book receivables:
  Principal                      $11,775,665  $10,382,505  $8,838,968
  Allowance for loan losses and
   nonaccretable acquisition
   fees                             (678,657)    (612,487)   (541,218)
                                 ------------ ------------ -----------
                                 $11,097,008   $9,770,018  $8,297,750
                                 ============ ============ ===========

  Allowance as a percentage of
   on-book receivables                   5.8%         5.9%        6.1%
                                 ============ ============ ===========

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 year ended June 30, 2006, as well as a $9 million pre-tax loss on the redemption of the Company's 9 1/4% Senior Notes due 2009, realized during the quarter and year ended June 30, 2006, is as follows:

                           Three Months Ended     Fiscal Year Ended
                                June 30,              June 30,
                           ------------------- -----------------------
                             2006      2005       2006        2005
                           --------- --------- ----------- -----------

Finance charge income      $458,874  $344,224  $1,641,125  $1,217,696
Other income                 24,759    16,949      95,364      55,565
Interest expense           (120,804)  (79,756)   (419,360)   (264,276)
                           --------- --------- ----------- -----------
  Net margin               $362,829  $281,417  $1,317,129  $1,008,985
                           ========= ========= =========== ===========

                           Three Months Ended     Fiscal Year Ended
                                June 30,              June 30,
                           ------------------- -----------------------
                             2006      2005       2006        2005
                           --------- --------- ----------- -----------

Finance charge income          16.4%     16.4%       16.4%       15.9%
Other income                    0.9       0.8         1.0         0.7
Interest expense               (4.3)     (3.8)       (4.2)       (3.4)
                           --------- --------- ----------- -----------
  Net margin as a percent
   of average on-book
   receivables                 13.0%     13.4%       13.2%       13.2%
                           ========= ========= =========== ===========

The following table provides additional information for comparative purposes related to the Company's acquisition on May 1, 2006:

                                                Three Months Ended
                                                   June 30, 2006
                                             -------------------------

                                             AmeriCredit     Total
                                                 Core      Portfolio
                                             ------------ ------------

Originations                                  $1,655,765   $1,734,065

Average managed receivables                  $11,272,893  $11,809,195

Net charge-offs                                 $114,353     $115,335

Net charge-offs as a percent of average
 receivables                                         4.1%         3.9%
                                             ============ ============

Contracts receiving a payment deferral as an
 average quarterly percentage of average
 receivables outstanding                             6.5%         6.2%
                                             ============ ============

Net margin                                      $358,102     $362,829
                                             ============ ============

Net margin as a percent of average on-book
 receivables                                        13.3%        13.0%
                                             ============ ============


                                                   June 30, 2006
                                             -------------------------

                                             AmeriCredit     Total
                                                 Core      Portfolio
                                             ------------ ------------

Managed receivables                          $11,391,037  $12,196,702

Loan delinquency:
(% of ending managed receivables)
  31 - 60 days                                       5.5%         5.1%
  Greater than 60 days                               2.2          2.1
                                             ------------ ------------
       Total                                         7.7%         7.2%
                                             ============ ============

Allowance as a percentage of on-book
 receivables                                         6.1%         5.8%
                                             ============ ============

CONTACT: AmeriCredit Corp., Fort Worth
Investor Relations
Deborah Vestal, 817-302-7210
or
Media Relations
John Hoffmann, 817-302-7627

SOURCE: AmeriCredit Corp.