• Quarterly loan originations increased 30% from the prior year
  • 2nd quarter earnings of $95 million, $0.74 per share
  • FY07 earnings guidance updated

FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 24, 2007--AMERICREDIT CORP. (NYSE:ACF) today announced net income of $95 million, or $0.74 per share, for its fiscal second quarter ended December 31, 2006. AmeriCredit reported net income of $87 million, or $0.59 per share, for the same period a year earlier. For the six months ended December 31, 2006, AmeriCredit reported net income of $170 million, or $1.27 per share, versus earnings of $141 million, or $0.93 per share, for the six months ended December 31, 2005.

Net income for the three and six months ended December 31, 2006, included a $23 million after-tax gain ($36 million pre-tax), or $0.18 per share and $0.17 per share, respectively, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc. Net income for all periods 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.

Automobile loan purchases increased to $1.74 billion for the second quarter of fiscal year 2007, compared to $1.34 billion for the same period last year. Loan purchases for the six months ended December 31, 2006, were $3.42 billion compared to $2.86 billion for the same period a year earlier. Managed receivables totaled $12.58 billion at December 31, 2006, compared to $11.00 billion at December 31, 2005.

Annualized net charge-offs totaled 5.8% of average managed receivables for the December 2006 quarter compared to 5.9% for the December 2005 quarter. For the six months ended December 31, 2006, annualized net charge-offs were 5.6% compared to 5.8% for the same period last year.

Managed auto receivables 31-to-60 days delinquent were 6.7% of the portfolio at December 31, 2006, compared to 6.5% at December 31, 2005. Accounts more than 60 days delinquent were 2.6% of the portfolio at December 31, 2006, compared to 2.8% at December 31, 2005.

"With the broader product spectrum provided by our recent acquisitions and solid origination trends coming out of the first half of our fiscal year, we are well positioned to take advantage of the seasonally strong March and June quarters," said President and Chief Executive Officer Dan Berce.

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 October 24, 2006, to reflect the impact of the acquisition of Long Beach Acceptance Corp. on January 1, 2007, and a pre-tax gain of $16 million on the sale of the Company's remaining investment in DealerTrack Holdings, Inc., in January 2007.

Net income and EPS forecasts

                                        Revised               Previous
                             Fiscal year ending     Fiscal year ending
                                  June 30, 2007          June 30, 2007
                         ---------------------- ----------------------
Net income ($ millions)            $337 - $367            $325 - $355

Earnings per share               $2.54 - $2.74          $2.45 - $2.65

The forecasts for fiscal year 2007 incorporate, but are not limited to, the following assumptions, which include Long Beach:

  • New loan origination volume of $7.8 to $8.4 billion;
  • Net interest margin of 11.6% to 12.6% of average receivables;
  • Operating expenses of 2.8% to 3.2% of the portfolio;
  • Credit losses to average between 4.3% and 5.3% 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 4.8% and 5.8%.

These forecasts do not include any future share repurchase activity.

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 over one million customers and approximately $14 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, the ability to integrate operational and strategic platforms, 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,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------
Revenue:
  Finance charge
   income             $502,217     $394,075     $986,574     $767,811
  Servicing income         979       21,445        8,438       46,786
  Other income          72,440       32,608      104,245       53,794
                   ------------ ------------ ------------ ------------
                       575,636      448,128    1,099,257      868,391
                   ------------ ------------ ------------ ------------
Costs and
 expenses:
  Operating
   expenses             94,095       83,919      182,383      161,784
  Provision for
   loan losses         174,800      125,865      348,705      291,725
  Interest expense     155,860      101,179      299,331      191,450
  Restructuring
   charges                  77           93          386          252
                   ------------ ------------ ------------ ------------
                       424,832      311,056      830,805      645,211
                   ------------ ------------ ------------ ------------

Income before
 income taxes          150,804      137,072      268,452      223,180

Income tax
 provision              55,378       50,498       98,790       82,573
                   ------------ ------------ ------------ ------------

  Net income           $95,426      $86,574     $169,662     $140,607
                   ============ ============ ============ ============

Earnings per
 share:
  Basic                  $0.82        $0.65        $1.41        $1.02
                   ============ ============ ============ ============

  Diluted                $0.74        $0.59        $1.27        $0.93
                   ============ ============ ============ ============

Weighted average
 shares            115,834,752  133,701,322  120,518,553  138,218,408
                   ============ ============ ============ ============

Weighted average
 shares and
 assumed
 incremental
 shares            130,153,556  148,325,483  134,935,826  152,958,115
                   ============ ============ ============ ============

Consolidated Balance Sheets

(Unaudited, Dollars in Thousands)

                                December 31,   June 30,   December 31,
                                   2006         2006         2005
                                ------------ ------------ ------------

Cash and cash equivalents          $897,386     $513,240     $586,145
Finance receivables, net         11,857,385   11,097,008    9,264,566
Credit enhancement assets             6,061      104,624      291,148
Restricted cash -
 securitization notes payable       865,591      860,935      698,321
Restricted cash - warehouse
 credit facilities                  149,173      140,042      526,300
Property and equipment, net          54,796       57,225       59,332
Deferred income taxes                99,657       78,789       41,705
Other assets                        183,211      216,002      268,876
                                ------------ ------------ ------------
  Total assets                  $14,113,260  $13,067,865  $11,736,393
                                ============ ============ ============

Warehouse credit facilities      $2,400,881   $2,106,282   $1,232,907
Securitization notes payable      8,907,498    8,518,849    7,875,604
Senior notes                              -            -      153,791
Convertible debt                    750,000      200,000      200,000
Funding payable                      56,484       54,623      225,801
Accrued taxes and expenses          141,548      155,799      114,756
Other liabilities                    14,212       23,426       13,254
                                ------------ ------------ ------------
  Total liabilities              12,270,623   11,058,979    9,816,113
                                ------------ ------------ ------------

Shareholders' equity              1,842,637    2,008,886    1,920,280
                                ------------ ------------ ------------
  Total liabilities and
   shareholders' equity         $14,113,260  $13,067,865  $11,736,393
                                ============ ============ ============

Consolidated Statements of Cash Flows

(Unaudited, Dollars in Thousands)

                         Three Months Ended       Six Months Ended
                            December 31,            December 31,
                       ----------------------- -----------------------
                          2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
Cash flows from
 operating activities:
  Net income              $95,426     $86,574    $169,662    $140,607
  Adjustments to
   reconcile net
   income to net cash
   provided by
   operating
   activities:
    Depreciation and
     amortization          13,419       9,055      19,497      18,129
    Accretion and
     amortization of
     loan fees             (6,472)     (4,533)    (13,959)     (6,748)
    Provision for loan
     losses               174,800     125,865     348,705     291,725
    Deferred income
     taxes                 10,109       7,025       3,568      (2,084)
    Accretion of
     present value
     discount                (664)    (10,995)     (5,955)    (22,658)
    Stock-based
     compensation
     expense                5,435       5,095       9,321       9,298
    Gain on sale of
     available for
     sale securities      (36,196)     (8,847)    (36,196)     (8,847)
    Other                     498        (435)      2,446        (689)
  Changes in assets
   and liabilities:
    Other assets           39,127       1,544       3,305       9,910
    Accrued taxes and
     expenses             (24,780)    (30,903)    (13,355)    (19,047)
                       ----------- ----------- ----------- -----------
Net cash provided by
 operating activities     270,702     179,445     487,039     409,596
                       ----------- ----------- ----------- -----------

Cash flows from
 investing activities:
  Purchase of
   receivables         (1,950,000) (1,524,704) (3,740,828) (3,146,643)
  Principal
   collections and
   recoveries on
   receivables          1,300,174     976,241   2,631,281   1,952,779
  Distributions from
   gain on sale Trusts     16,692     110,655      92,709     253,673
  Net (purchases)
   sales of property
   and equipment           (1,937)     (1,347)     (3,001)     32,558
  Proceeds from sale
   of available for
   sale securities         44,300      11,992      44,300      11,992
  Net change in
   restricted cash and
   other                1,092,985    (277,819)    (11,812)   (132,258)
                       ----------- ----------- ----------- -----------
Net cash provided
 (used) by investing
 activities               502,214    (704,982)   (987,351) (1,027,899)
                       ----------- ----------- ----------- -----------

Cash flows from
 financing activities:
  Net change in
   warehouse credit
   facilities             429,786     128,167     294,599     241,933
  Net change in
   securitization
   notes payable       (1,174,637)    498,090     386,773     708,475
  Net change in senior
   notes and other          1,406     (18,132)    (11,393)    (21,817)
  Proceeds from
   issuance of
   convertible debt             -           -     497,376           -
  Repurchase of common
   stock                        -    (194,815)   (323,964)   (398,929)
  Proceeds from
   issuance of common
   stock                   29,206       5,774      43,226       9,181
                       ----------- ----------- ----------- -----------
Net cash (used)
 provided by financing
 activities              (714,239)    419,084     886,617     538,843
                       ----------- ----------- ----------- -----------

Net increase
 (decrease) in cash
 and cash equivalents      58,677    (106,453)    386,305     (79,460)

Effect of Canadian
 exchange rate changes
 on cash and cash
 equivalents               (2,058)        122      (2,159)      2,104

Cash and cash
 equivalents at
 beginning of period      840,767     692,476     513,240     663,501
                       ----------- ----------- ----------- -----------

Cash and cash
 equivalents at end of
 period                  $897,386    $586,145    $897,386    $586,145
                       =========== =========== =========== ===========

Other Financial Data

(Unaudited, Dollars in Thousands)

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Loan originations   $1,740,767   $1,339,526   $3,424,736   $2,859,672
Loans securitized      601,800    1,513,514    2,975,741    2,702,705

Average on-book
 receivables       $12,392,922   $9,573,416  $12,173,441   $9,312,002
Average gain on
 sale receivables       58,069    1,445,804      181,432    1,708,097
                   ------------ ------------ ------------ ------------
Average managed
 receivables       $12,450,991  $11,019,220  $12,354,873  $11,020,099
                   ============ ============ ============ ============

                   December 31,   June 30,   December 31,
                      2006         2006         2005
                   ------------ ------------ ------------

On-book
 receivables       $12,548,925  $11,775,665   $9,873,603
Gain on sale
 receivables            34,083      421,037    1,125,188
                   ------------ ------------ ------------
Managed
 receivables       $12,583,008  $12,196,702  $10,998,791
                   ============ ============ ============

                      Three Months Ended         Six Months Ended
                         December 31,              December 31,
                   ------------------------- -------------------------
                      2006         2005         2006         2005
                   ------------ ------------ ------------ ------------

Operating expenses     $94,095      $83,919     $182,383     $161,784
Operating expenses
 as a percent of
 average managed
 receivables               3.0%         3.0%         2.9%         2.9%
Tax rate                 36.72%       36.84%       36.80%       37.00%
                                         December    June   December
                                             31,      30,       31,
                                            2006     2006      2005
                                         ---------- ------- ----------

Loan delinquency:
  On-book:
  (% of ending on-book receivables)
     31 - 60 days                              6.7%    5.0%       6.0%
     Greater than 60 days                      2.6     2.0        2.5
                                         ---------- ------- ----------
       Total                                   9.3%    7.0%       8.5%
                                         ========== ======= ==========

  Gain on sale:
  (% of ending gain on sale receivables)
     31 - 60 days                              1.3%    9.2%      11.1%
     Greater than 60 days                      0.3     3.8        5.2
                                         ---------- ------- ----------
       Total                                   1.6%   13.0%      16.3%
                                         ========== ======= ==========

  Total portfolio:
  (% of ending managed receivables)
     31 - 60 days                              6.7%    5.1%       6.5%
     Greater than 60 days                      2.6     2.1        2.8
                                         ---------- ------- ----------
       Total                                   9.3%    7.2%       9.3%
                                         ========== ======= ==========
                                           Three Months   Six Months
                                               Ended         Ended
                                           December 31,  December 31,
                                           ------------- -------------
                                           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)                              6.8%   6.4%   6.5%   6.4%
                                           ====== ====== ====== ======
  Gain on sale (% of average gain on sale
   receivables)                              1.3%   9.5%   3.5%  10.1%
                                           ====== ====== ====== ======
  Total portfolio (% of average managed
   receivables)                              6.7%   6.8%   6.5%   7.0%
                                           ====== ====== ====== ======
                               Three Months Ended   Six Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Net charge-offs:
  On-book                      $183,153  $128,343  $345,017  $237,516
  Gain on sale                      284    36,657     4,816    84,639
                               --------- --------- --------- ---------
                               $183,437  $165,000  $349,833  $322,155
                               ========= ========= ========= =========

Net charge-offs as a percent
 of average
  receivables:
  On-book                           5.9%      5.3%      5.6%      5.1%
                               ========= ========= ========= =========

  Gain on sale                      1.9%     10.1%      5.3%      9.8%
                               ========= ========= ========= =========

  Total portfolio                   5.8%      5.9%      5.6%      5.8%
                               ========= ========= ========= =========
Net recoveries as a percent of
 gross repossession charge-
 offs:
  On-book                          48.8%     48.0%     48.8%     47.8%
                               ========= ========= ========= =========

  Gain on sale                     42.9%     40.8%     43.5%     40.3%
                               ========= ========= ========= =========

  Total portfolio                  48.8%     46.4%     48.7%     45.8%
                               ========= ========= ========= =========
                                December 31,   June 30,   December 31,
                                    2006         2006         2005
                                ------------ ------------ ------------
On-book receivables:
  Principal                     $12,548,925  $11,775,665   $9,873,603
  Allowance for loan losses and
   nonaccretable acquisition
   fees                            (691,540)    (678,657)    (609,037)
                                ------------ ------------ ------------
                                $11,857,385  $11,097,008   $9,264,566
                                ============ ============ ============

  Allowance as a percentage of
   on-book receivables                  5.5%         5.8%         6.2%
                                ============ ============ ============

The Company's net margin as reflected on the consolidated statements of income, excluding a $36 million and a $9 million pre-tax gain on the partial sale of the Company's investment in DealerTrack Holdings, Inc., realized during the three and six months ended December 31, 2006 and 2005, respectively, is as follows:

                               Three Months Ended   Six Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------

Finance charge income          $502,217  $394,075  $986,574  $767,811
Other income                     36,244    23,761    68,049    44,947
Interest expense               (155,860) (101,179) (299,331) (191,450)
                               --------- --------- --------- ---------
  Net margin                   $382,601  $316,657  $755,292  $621,308
                               ========= ========= ========= =========
                                       Three Months      Six Months
                                            Ended           Ended
                                        December 31,    December 31,
                                      ---------------- ---------------
                                       2006     2005    2006    2005
                                      -------- ------- ------- -------

Finance charge income                    16.1%   16.3%   16.1%   16.3%
Other income                              1.1     1.0     1.1     1.0
Interest expense                         (5.0)   (4.2)   (4.9)   (4.1)
                                      -------- ------- ------- -------
  Net margin as a percent of average
   on-book receivables                   12.2%   13.1%   12.3%   13.2%
                                      ======== ======= ======= =======

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         Six Months Ended
                       December 31, 2006         December 31, 2006
                   ------------------------- -------------------------

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

Originations        $1,611,250   $1,740,767   $3,161,247   $3,424,736

Average managed
 receivables       $11,586,422  $12,450,991  $11,511,977  $12,354,873

Net charge-offs       $181,157     $183,437     $345,505     $349,833

Net charge-offs as
 a percent of
 average
 receivables               6.2%         5.8%         6.0%         5.6%
                   ============ ============ ============ ============

Contracts
 receiving a
 payment deferral
 as an average
 quarterly
 percentage of
 average
 receivables
 outstanding               7.2%         6.7%         6.9%         6.5%
                   ============ ============ ============ ============

Net margin            $374,210     $382,601     $739,196     $755,292
                   ============ ============ ============ ============

Net margin as a
 percent of
 average on-book
 receivables              12.8%        12.2%        12.9%        12.3%
                   ============ ============ ============ ============
                                                 December 31, 2006
                                             -------------------------

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

Managed receivables                          $11,697,310  $12,583,008

Loan delinquency:
(% of ending managed receivables)
  31 - 60 days                                       7.2%         6.7%
  Greater than 60 days                               2.7          2.6
                                             ------------ ------------
    Total                                            9.9%         9.3%
                                             ============ ============

Allowance as a percentage of on-book
 receivables                                         5.8%         5.5%
                                             ============ ============

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

SOURCE: AmeriCredit Corp.