FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 24, 2006--AmeriCredit Corp. (NYSE:ACF):

  • 1st Quarter earnings of $74 million, $0.54 per share
  • $324 million of stock repurchased
  • Unrestricted cash balance grew to $841 million
  • FY07 earnings guidance updated

AmeriCredit Corp. (NYSE:ACF) today announced net income of $74 million, or $0.54 per share, for its fiscal first quarter ended September 30, 2006. AmeriCredit reported net income of $54 million, or $0.35 per share, for the same period a year earlier.

Automobile loan purchases increased to $1.68 billion for the first quarter of fiscal year 2007, compared to $1.52 billion for the September 2005 quarter. Managed receivables totaled $12.33 billion at September 30, 2006, compared to $11.05 billion at September 30, 2005.

Annualized net charge-offs totaled 5.4% of average managed receivables for the September 2006 quarter compared to 5.7% for the September 2005 quarter.

Managed receivables 31-to-60 days delinquent were 6.0% of the portfolio at September 30, 2006, and unchanged from September 30, 2005. Accounts more than 60 days delinquent were 2.5% of the portfolio at September 30, 2006, compared to 2.6% at September 30, 2005.

"Our September quarter was a solid beginning to fiscal year 2007, with new loan volume and credit performance improved from a year ago," said President and Chief Executive Officer Dan Berce. "We have further developed our core subprime business as we continued to roll out a broader credit spectrum of product offerings through our Bay View platform."

Unrestricted cash totaled $841 million at September 30, 2006. The Company issued $550 million of convertible senior notes with an average coupon of 1.44% in September 2006. During the quarter, the Company repurchased $324 million of its common stock, which brought total repurchase activity to $1.25 billion since the inception of its stock repurchase program in April 2004. In September, the Company's Board of Directors authorized an additional $300 million of stock repurchases. Shareholders' equity was $1.72 billion at September 30, 2006, resulting in a managed assets-to-equity ratio of 7.2 at September 30, 2006.

"We rebalanced our capital position and strengthened our balance sheet during the first quarter by issuing convertible senior notes and repurchasing a significant amount of common stock," said Chief Financial Officer Chris Choate. "This better positions us for any opportunities or challenges that may lie ahead this fiscal 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 and earnings per share forecasts have been updated from guidance provided on August 7, 2006, to reflect stock repurchased through September 30, 2006, and a pre-tax gain of $36 million on the sale of approximately 2 million shares of the Company's investment in DealerTrack Holdings, Inc., in October 2006.

Net income and EPS forecasts
----------------------------

                                          Revised             Previous
                               Fiscal year ending   Fiscal year ending
                                    June 30, 2007        June 30, 2007
                            --------------------- --------------------
Net income ($ millions)              $325 - $355          $305 - $335

Earnings per share                 $2.45 - $2.65        $2.15 - $2.35

The forecasts for fiscal year 2007 incorporate, but are not limited to, the following assumptions, which are unchanged from August 7, 2006:

  • New loan origination volume of $7.2 to $7.8 billion;
  • Net interest margin of 12.0% to 13.0% of average receivables;
  • Operating expenses of 2.8% to 3.2% of the portfolio;
  • Credit losses to average between 4.5% and 5.5% 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%.

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

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 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 for the year ended June 30, 2006. 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
                                                   September 30,
                                             -------------------------
                                                2006         2005
                                             ------------ ------------
Revenue:
     Finance charge income                      $484,357     $373,736
     Servicing income                              7,459       25,341
     Other income                                 31,805       21,186
                                             ------------ ------------
                                                 523,621      420,263
                                             ------------ ------------
Costs and expenses:
     Operating expenses                           88,288       77,865
     Provision for loan losses                   173,905      165,860
     Interest expense                            143,471       90,271
     Restructuring charges                           309          159
                                             ------------ ------------
                                                 405,973      334,155
                                             ------------ ------------

Income before income taxes                       117,648       86,108

Income tax provision                              43,412       32,075
                                             ------------ ------------

     Net income                                  $74,236      $54,033
                                             ============ ============

Earnings per share:
     Basic                                         $0.59        $0.38
                                             ============ ============

     Diluted                                       $0.54        $0.35
                                             ============ ============

Weighted average shares                      125,278,738  142,735,494
                                             ============ ============

Weighted average shares and assumed
 incremental shares                          139,718,283  157,590,746
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                                 September       June      September
                                     30,         30,           30,
                                   2006         2006         2005
                                ------------ ------------ ------------

Cash and cash equivalents          $840,767     $513,240     $692,476
Finance receivables, net         11,520,531   11,097,008    8,857,389
Credit enhancement assets            24,075      104,624      399,015
Restricted cash -
 securitization notes payable     1,350,602      860,935      674,600
Restricted cash - warehouse
 credit facilities                  759,411      140,042      271,849
Property and equipment, net          55,509       57,225       59,406
Deferred income taxes                95,625       78,789       62,883
Other assets                        252,395      216,002      218,048
                                ------------ ------------ ------------
     Total assets               $14,898,915  $13,067,865  $11,235,666
                                ============ ============ ============

Warehouse credit facilities      $1,971,095   $2,106,282   $1,104,740
Securitization notes payable     10,081,115    8,518,849    7,377,648
Senior notes                              -            -      166,841
Convertible debt                    750,000      200,000      200,000
Funding payable                     196,089       54,623      235,573
Accrued taxes and expenses          166,506      155,799      145,914
Other liabilities                    10,964       23,426       15,583
                                ------------ ------------ ------------
     Total liabilities           13,175,769   11,058,979    9,246,299
                                ------------ ------------ ------------

Shareholders' equity              1,723,146    2,008,886    1,989,367
                                ------------ ------------ ------------
     Total liabilities and
      shareholders' equity      $14,898,915  $13,067,865  $11,235,666
                                ============ ============ ============
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)

                                                 Three Months Ended
                                                    September 30,
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------
Cash flows from operating activities:
   Net income                                     $74,236     $54,033
   Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                 6,078       9,074
      Accretion and amortization of loan fees      (7,487)     (2,215)
      Provision for loan losses                   173,905     165,860
      Deferred income taxes                        (6,541)     (9,109)
      Accretion of present value discount          (5,291)    (11,663)
      Stock-based compensation expense              3,886       4,203
      Other                                         1,948        (254)
   Changes in assets and liabilities:
      Other assets                                (35,822)      8,366
      Accrued taxes and expenses                   11,425      11,856
                                               ----------- -----------
Net cash provided by operating activities         216,337     230,151
                                               ----------- -----------

Cash flows from investing activities:
   Purchase of receivables                     (1,790,828) (1,621,939)
   Principal collections and recoveries on
    receivables                                 1,331,107     976,538
   Distributions from gain on sale Trusts          76,017     143,018
   Net (purchases) sales of property and
    equipment                                      (1,064)     33,905
   Net change in restricted cash and other     (1,104,797)    145,561
                                               ----------- -----------
Net cash used by investing activities          (1,489,565)   (322,917)
                                               ----------- -----------

Cash flows from financing activities:
   Net change in warehouse credit facilities     (135,187)    113,766
   Net change in securitization notes payable   1,561,410     210,385
   Net change in senior notes and other           (12,799)     (3,685)
   Proceeds from issuance of convertible debt     497,376           -
   Repurchase of common stock                    (323,964)   (204,114)
   Proceeds from issuance of common stock          14,020       3,407
                                               ----------- -----------
Net cash provided by financing activities       1,600,856     119,759
                                               ----------- -----------

Net increase in cash and cash equivalents         327,628      26,993

Effect of Canadian exchange rate changes on
 cash and cash equivalents                           (101)      1,982

Cash and cash equivalents at beginning of
 period                                           513,240     663,501
                                               ----------- -----------

Cash and cash equivalents at end of period       $840,767    $692,476
                                               =========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)

                                               Three Months Ended
                                                  September 30,
                                            -------------------------
                                               2006         2005
                                            ------------ ------------

Loan originations                            $1,683,969   $1,520,146
Loans securitized                             2,373,941    1,189,191

Average on-book receivables                 $11,953,970   $9,050,440
Average gain on sale receivables                304,795    1,970,313
                                            ------------ ------------
Average managed receivables                 $12,258,765  $11,020,753
                                            ============ ============


                                 September       June      September
                                    30,          30,          30,
                                   2006         2006         2005
                                ------------ -------------------------

On-book receivables             $12,218,713  $11,775,665   $9,462,883
Gain on sale receivables            107,314      421,037    1,590,943
                                ------------ -------------------------
Managed receivables             $12,326,027  $12,196,702  $11,053,826
                                ============ =========================


                                                 Three Months Ended
                                                    September 30,
                                                ---------------------
                                                  2006       2005
                                                ---------- ----------

Operating expenses                                $88,288    $77,865
Operating expenses as a percent of average
 managed receivables                                  2.9%       2.8%
Tax rate                                            36.90%     37.25%
                                          September  June   September
                                             30,      30,       30,
                                            2006     2006      2005
                                          --------- ------- ----------

Loan delinquency:
     On-book:
     (% of ending on-book receivables)
          31 - 60 days                         6.0%    5.0%       5.3%
          Greater than 60 days                 2.5     2.0        2.2
                                          --------- ------- ----------
               Total                           8.5%    7.0%       7.5%
                                          ========= ======= ==========

     Gain on sale:
     (% of ending gain on sale
      receivables)
          31 - 60 days                         7.5%    9.2%      10.1%
          Greater than 60 days                 3.2     3.8        4.8
                                          --------- ------- ----------
               Total                          10.7%   13.0%      14.9%
                                          ========= ======= ==========

     Total portfolio:
     (% of ending managed receivables)
          31 - 60 days                         6.0%    5.1%       6.0%
          Greater than 60 days                 2.5     2.1        2.6
                                          --------- ------- ----------
               Total                           8.5%    7.2%       8.6%
                                          ========= ======= ==========
                                              Three Months Ended
                                                 September 30,
                                         -----------------------------
                                              2006           2005
                                         --------------- -------------
Contracts receiving a payment
  deferral as an average quarterly
  percentage of average receivables
  outstanding:
    On-book (% of average on-book
        receivables)                                6.3%          6.4%
                                         =============== =============
    Gain on sale (% of average gain on
        sale receivables)                           5.8%         10.7%
                                         =============== =============
    Total portfolio (% of average
        managed receivables)                        6.3%          7.2%
                                         =============== =============
                                                Three Months Ended
                                                  September 30,
                                            --------------------------
                                                2006          2005
                                            -------------- -----------
Net charge-offs:
     On-book                                     $161,864    $109,173
     Gain on sale                                   4,532      47,982
                                            -------------- -----------
                                                 $166,396    $157,155
                                            ============== ===========

Net charge-offs as a percent of average
     receivables:
     On-book                                          5.4%        4.8%
                                            ============== ===========

     Gain on sale                                     5.9%        9.7%
                                            ============== ===========

     Total portfolio                                  5.4%        5.7%
                                            ============== ===========
Net recoveries as a percent of gross
     repossession charge-offs:
     On-book                                         48.8%       47.6%
                                            ============== ===========

     Gain on sale                                    43.6%       39.9%
                                            ============== ===========

     Total portfolio                                 48.6%       45.2%
                                            ============== ===========
                                  September       June     September
                                      30,         30,          30,
                                     2006         2006        2005
                                 ------------ ------------ -----------
On-book receivables:
     Principal                   $12,218,713  $11,775,665  $9,462,883
     Allowance for loan losses
      and nonaccretable
      acquisition fees              (698,182)    (678,657)   (605,494)
                                 ------------ ------------ -----------
                                 $11,520,531  $11,097,008  $8,857,389
                                 ============ ============ ===========

     Allowance as a percentage
      of on-book receivables             5.7%         5.8%        6.4%
                                 ============ ============ ===========

The Company's net margin as reflected on the consolidated statements of income is as follows:

                                             Three Months Ended
                                                September 30,
                                       -------------------------------
                                                 2006            2005
                                       --------------- ---------------

Finance charge income                        $484,357        $373,736
Other income                                   31,805          21,186
Interest expense                             (143,471)        (90,271)
                                       --------------- ---------------
     Net margin                              $372,691        $304,651
                                       =============== ===============
                                           Three Months Ended
                                              September 30,
                                   -----------------------------------
                                         2006              2005
                                   ------------------ ----------------

Finance charge income                           16.1%            16.4%
Other income                                     1.1              0.9
Interest expense                                (4.8)            (3.9)
                                   ------------------ ----------------
     Net margin as a percent of
      average on-book receivables               12.4%            13.4%
                                   ================== ================

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

                                                Three Months Ended
                                                September 30, 2006
                                             -------------------------

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

Originations                                  $1,549,997   $1,683,969

Average managed receivables                  $11,437,542  $12,258,765

Net charge-offs                                 $164,348     $166,396

Net charge-offs as a percent of
  average receivables                                5.7%         5.4%
                                             ============ ============

Contracts receiving a payment
  deferral as an average quarterly
  percentage of average receivables
  outstanding                                        6.7%         6.3%
                                             =========================

Net margin                                      $364,986     $372,691
                                             ============ ============

Net margin as a percent of
  average on-book receivables                       13.0%        12.4%
                                             ============ ============
                                                September 30, 2006
                                             -------------------------

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

Managed receivables                          $11,481,748  $12,326,027

Loan delinquency:
(% of ending managed receivables)
     31 - 60 days                                    6.4%         6.0%
     Greater than 60 days                            2.7          2.5
                                             ------------ ------------
          Total                                      9.1%         8.5%
                                             ============ ============

Allowance as a percentage of on-book
 receivables                                         6.0%         5.7%

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

SOURCE: AmeriCredit Corp.