- 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.