• 3rd quarter earnings of $104 million, $0.80 per share
  • Quarterly origination volume increased to $2.52 billion
  • Charge-offs declined to 4.6%
  • FY08 earnings guidance issued

FORT WORTH, Texas--(BUSINESS WIRE)--April 30, 2007--AMERICREDIT CORP. (NYSE:ACF) today announced net income of $104 million, or $0.80 per share, for its fiscal third quarter ended March 31, 2007. AmeriCredit reported net income of $87 million, or $0.60 per share, for the same period a year earlier. For the nine months ended March 31, 2007, AmeriCredit reported net income of $273 million, or $2.06 per share, versus earnings of $227 million, or $1.53 per share, for the nine months ended March 31, 2006. Operating results for the three and nine months ended March 31, 2007, included Bay View Acceptance Corporation, acquired on May 1, 2006, and Long Beach Acceptance Corp. since its acquisition on January 1, 2007.

Net income for the three months ended March 31, 2007, included a $10 million after-tax gain ($16 million pre-tax), or $0.08 per share, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc., and a $21 million, or $0.16 per share, adjustment to reserves for contingent tax positions. Net income for the nine months ended March 31, 2007 and 2006, included a $33 million after-tax gain ($52 million pre-tax), or $0.25 per share, and a $6 million after-tax gain ($9 million pre-tax), or $0.04 per share, respectively, related to the sale of AmeriCredit's investment in DealerTrack Holdings, Inc.

Automobile finance originations increased to $2.52 billion for the third quarter of fiscal year 2007, compared to $1.61 billion for the same period last year. Origination volume for the nine months ended March 31, 2007, was $5.94 billion compared to $4.47 billion for the same period a year earlier. Managed receivables totaled $15.15 billion at March 31, 2007, compared to $11.13 billion at March 31, 2006.

Annualized net charge-offs totaled 4.6% of average managed receivables for the March 2007 quarter compared to 5.2% for the March 2006 quarter. For the nine months ended March 31, 2007, annualized net charge-offs were 5.2% compared to 5.6% for the same period last year.

Managed auto receivables 31-to-60 days delinquent were 4.1% of the portfolio at March 31, 2007, compared to 4.7% at March 31, 2006. Accounts more than 60 days delinquent were 1.5% of the portfolio at March 31, 2007, compared to 1.6% at March 31, 2006.

"Our strong origination volume and improved credit results this quarter reflected both the normal seasonal lifts and the impact of our transition to full-spectrum lending. Full-spectrum lending provides an opportunity to efficiently originate an optimal mix of business and positions us to continue to grow our business, manage credit volatility and generate solid returns for our shareholders," 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.

Net income and EPS forecasts


                                                    Fiscal year ending
                                                         June 30, 2008
                                                  --------------------
Net income ($ millions)                                   $345 - $375

Earnings per share                                      $2.65 - $2.85

The forecasts include the results of Long Beach Acceptance Corp. for fiscal year 2008. The Company completed this acquisition on January 1, 2007. Long Beach Acceptance Corp. provides financing to customers with near prime credit scores. Therefore, its net interest margin and credit losses are historically lower than AmeriCredit's. The forecasts for fiscal year 2008 incorporate, but are not limited to, the following assumptions:

  • Origination volume of $10.0 to $10.5 billion;
  • Net interest margin of 10.5% to 11.5% of average receivables;
  • Operating expenses of 2.6% to 3.0% of the portfolio;
  • Credit losses to average between 4.0% and 5.0% 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 4.5% and 5.5%.

These forecasts do not assume 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 $15 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, the high degree of risk associated with subprime borrowers, acquisition integration 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         Nine Months Ended
                           March 31,                 March 31,
                   ------------------------- -------------------------
                      2007         2006         2007         2006
                   ------------ ------------ ------------ ------------
Revenue:
  Finance charge
   income             $564,104     $414,440   $1,550,678   $1,182,251
  Servicing income         571       15,006        9,009       61,792
  Other income          50,598       25,658      154,843       79,452
                   ------------ ------------ ------------ ------------
                       615,273      455,104    1,714,530    1,323,495
                   ------------ ------------ ------------ ------------
Costs and
 expenses:
  Operating
   expenses            109,446       89,686      291,829      251,470
  Provision for
   loan losses         189,028      118,769      537,733      410,494
  Interest expense     186,610      107,106      485,941      298,556
  Restructuring
   charges                 757        1,874        1,143        2,126
                   ------------ ------------ ------------ ------------
                       485,841      317,435    1,316,646      962,646
                   ------------ ------------ ------------ ------------

Income before
 income taxes          129,432      137,669      397,884      360,849

Income tax
 provision              25,700       50,937      124,490      133,510
                   ------------ ------------ ------------ ------------

  Net income          $103,732      $86,732     $273,394     $227,339
                   ============ ============ ============ ============

Earnings per
 share:
  Basic                  $0.88        $0.67        $2.29        $1.68
                   ============ ============ ============ ============

  Diluted                $0.80        $0.60        $2.06        $1.53
                   ============ ============ ============ ============

Weighted average
 shares            117,540,639  129,629,967  119,539,921  135,397,387
                   ============ ============ ============ ============

Weighted average
 shares and
 assumed
 incremental
 shares            131,166,057  144,954,396  133,693,242  150,332,001
                   ============ ============ ============ ============

Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                                 March 31,     June 30,    March 31,
                                   2007         2006         2006
                                ------------ ------------ ------------

Cash and cash equivalents          $615,395     $513,240     $700,800
Finance receivables, net         14,367,447   11,097,008    9,770,018
Credit enhancement assets             5,977      104,624      203,208
Restricted cash -
 securitization notes payable     1,144,173      860,935      803,110
Restricted cash - credit
 facilities                         194,693      140,042      101,981
Property and equipment, net          63,393       57,225       58,343
Deferred income taxes               153,521       78,789       60,795
Goodwill                            200,497       14,435            -
Other assets                        139,815      201,567      209,981
                                ------------ ------------ ------------
  Total assets                  $16,884,911  $13,067,865  $11,908,236
                                ============ ============ ============

Credit facilities                $3,004,774   $2,106,282   $1,435,134
Securitization notes payable     10,883,909    8,518,849    7,867,074
Senior notes                              -            -      153,869
Convertible debt                    750,000      200,000      200,000
Funding payable                      93,170       54,623       54,559
Accrued taxes and expenses          188,984      155,799      160,899
Other liabilities                    14,404       23,426       20,998
                                ------------ ------------ ------------
  Total liabilities              14,935,241   11,058,979    9,892,533
                                ------------ ------------ ------------

Shareholders' equity              1,949,670    2,008,886    2,015,703
                                ------------ ------------ ------------
  Total liabilities and
   shareholders' equity         $16,884,911  $13,067,865  $11,908,236
                                ============ ============ ============

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

                         Three Months Ended       Nine Months Ended
                              March 31,               March 31,
                       ----------------------- -----------------------
                          2007        2006        2007        2006
                       ----------- ----------- ----------- -----------
Cash flows from
 operating activities:
  Net income             $103,732     $86,732    $273,394    $227,339
  Adjustments to
   reconcile net
   income to net cash
   provided by
   operating
   activities:
    Depreciation and
     amortization           4,528       9,506      24,025      27,635
    Accretion and
     amortization of
     loan fees             (3,307)     (5,787)    (17,266)    (12,535)
    Provision for loan
     losses               189,028     118,769     537,733     410,494
    Deferred income
     taxes                (25,754)    (20,028)    (22,186)    (22,112)
    Accretion of
     present value
     discount                (439)     (8,029)     (6,394)    (30,687)
    Stock-based
     compensation
     expense                5,054       3,392      14,375      12,690
    Gain on sale of
     available for
     sale securities      (15,801)          -     (51,997)     (8,847)
    Other                   1,273       1,003       3,719         314
  Changes in assets
   and liabilities:
     Other assets          23,869      73,385      27,174      83,295
     Accrued taxes and
      expenses             17,840      47,509       4,485      28,462
                       ----------- ----------- ----------- -----------
Net cash provided by
 operating activities     300,023     306,452     787,062     716,048
                       ----------- ----------- ----------- -----------

Cash flows from
 investing activities:
  Purchase of
   receivables         (2,542,356) (1,947,168) (6,283,184) (5,093,811)
  Principal
   collections and
   recoveries on
   receivables          1,621,219   1,156,337   4,252,500   3,109,116
  Distributions from
   gain on sale Trusts        248      92,463      92,957     346,136
  Net (purchases)
   sales of property
   and equipment           (9,736)     (2,004)    (12,737)     30,554
  Proceeds from sale
   of available for
   sale securities         18,661           -      62,961      11,992
  Acquisition of Long
   Beach, net of cash
   acquired              (257,813)          -    (257,813)          -
  Net change in
   restricted cash and
   other                 (197,472)    320,092    (209,284)    187,834
                       ----------- ----------- ----------- -----------
Net cash used by
 investing activities  (1,367,249)   (380,280) (2,354,600) (1,408,179)
                       ----------- ----------- ----------- -----------

Cash flows from
 financing activities:
  Net change in credit
   facilities             401,371     202,227     695,970     444,160
  Net change in
   securitization
   notes payable          384,858      (8,491)    771,631     699,984
  Net change in senior
   notes and other         (3,878)      3,093     (15,271)    (18,724)
  Proceeds from
   issuance of
   convertible debt             -           -     497,376           -
  Repurchase of common
   stock                        -     (23,117)   (323,964)   (422,046)
  Proceeds from
   issuance of common
   stock                    4,638      14,967      47,864      24,148
                       ----------- ----------- ----------- -----------
Net cash provided by
 financing activities     786,989     188,679   1,673,606     727,522
                       ----------- ----------- ----------- -----------

Net (decrease)
 increase in cash and
 cash equivalents        (280,237)    114,851     106,068      35,391

Effect of Canadian
 exchange rate changes
 on cash and cash
 equivalents               (1,754)       (196)     (3,913)      1,908

Cash and cash
 equivalents at
 beginning of period      897,386     586,145     513,240     663,501
                       ----------- ----------- ----------- -----------

Cash and cash
 equivalents at end of
 period                  $615,395    $700,800    $615,395    $700,800
                       =========== =========== =========== ===========

Other Financial Data
(Unaudited, Dollars in Thousands)

                      Three Months Ended         Nine Months Ended
                           March 31,                 March 31,
                   ------------------------- -------------------------
                      2007         2006         2007         2006
                   ------------ ------------ ------------ ------------

Origination volume  $2,518,336   $1,614,267   $5,943,072   $4,473,939
Loans securitized    1,919,503    1,000,002    4,895,244    3,702,707

Average on-book
 receivables       $14,669,061  $10,115,082  $12,993,241   $9,575,795
Average gain on
 sale receivables       31,500      902,246      132,185    1,443,547
                   ------------ ------------ ------------ ------------
Average managed
 receivables       $14,700,561  $11,017,328  $13,125,426  $11,019,342
                   ============ ============ ============ ============

                    March 31,     June 30,    March 31,
                      2007         2006         2006
                   ------------ ------------ ------------

On-book
 receivables       $15,123,907  $11,775,665  $10,382,505
Gain on sale
 receivables            28,979      421,037      750,637
                   ------------ ------------ ------------
Managed
 receivables       $15,152,886  $12,196,702  $11,133,142
                   ============ ============ ============

                      Three Months Ended         Nine Months Ended
                           March 31,                 March 31,
                   ------------------------- -------------------------
                      2007         2006         2007         2006
                   ------------ ------------ ------------ ------------

Operating expenses    $109,446      $89,686     $291,829     $251,470
Operating expenses
 as a percent of
 average managed
 receivables               3.0%         3.3%         3.0%         3.0%
Tax rate                 19.86%       37.00%       31.29%       37.00%

                    March 31,     June 30,    March 31,
                      2007         2006         2006
                   ------------ ------------ ------------

Loan delinquency:
  On-book:
  (% of ending on-
   book
   receivables)
    31 - 60 days           4.1%         5.0%         4.5%
    Greater than
     60 days               1.5          2.0          1.5
                   ------------ ------------ ------------
      Total                5.6%         7.0%         6.0%
                   ============ ============ ============

  Gain on sale:
  (% of ending
   gain on sale
   receivables)
    31 - 60 days           0.8%         9.2%         7.0%
    Greater than
     60 days               0.4          3.8          3.3
                   ------------ ------------ ------------
      Total                1.2%        13.0%        10.3%
                   ============ ============ ============

  Total portfolio:
  (% of ending
   managed
   receivables)
    31 - 60 days           4.1%         5.1%         4.7%
    Greater than
     60 days               1.5          2.1          1.6
                   ------------ ------------ ------------
      Total                5.6%         7.2%         6.3%
                   ============ ============ ============

                      Three Months Ended         Nine Months Ended
                           March 31,                 March 31,
                   ------------------------- -------------------------
                      2007         2006         2007         2006
                   ------------ ------------ ------------ ------------
Contracts
 receiving a
 payment deferral
 as an average
 quarterly
 percentage of
 average
 receivables
 outstanding:
  On-book (% of
   average on-book
   receivables)            5.0%         5.4%         6.0%         6.1%
                   ============ ============ ============ ============
  Gain on sale (%
   of average gain
   on sale
   receivables)            1.5%         7.4%         2.8%         9.2%
                   ============ ============ ============ ============
  Total portfolio
   (% of average
   managed
   receivables)            5.0%         5.6%         6.0%         6.5%
                   ============ ============ ============ ============

                      Three Months Ended         Nine Months Ended
                           March 31,                 March 31,
                   ------------------------- -------------------------
                      2007         2006         2007         2006
                   ------------ ------------ ------------ ------------
Net charge-offs:
  On-book             $165,117     $122,119     $510,134     $359,635
  Gain on sale              58       19,020        4,874      103,659
                   ------------ ------------ ------------ ------------
                      $165,175     $141,139     $515,008     $463,294
                   ============ ============ ============ ============

Net charge-offs as
 a percent of
 average
 receivables:
  On-book                  4.6%         4.9%         5.2%         5.0%
                   ============ ============ ============ ============

  Gain on sale             0.7%         8.5%         4.9%         9.6%
                   ============ ============ ============ ============

  Total portfolio          4.6%         5.2%         5.2%         5.6%
                   ============ ============ ============ ============

Net recoveries as
 a percent of
 gross
 repossession
 charge-offs:
  On-book                 49.5%        50.6%        49.0%        48.9%
                   ============ ============ ============ ============

  Gain on sale            60.7%        45.0%        43.9%        41.4%
                   ============ ============ ============ ============

  Total portfolio         49.5%        49.8%        49.0%        47.2%
                   ============ ============ ============ ============

                    March 31,     June 30,    March 31,
                      2007         2006         2006
                   ------------ ------------ ------------
On-book
 receivables:
  Principal        $15,123,907  $11,775,665  $10,382,505
  Allowance for
   loan losses and
   nonaccretable
   acquisition
   fees               (756,460)    (678,657)    (612,487)
                   ------------ ------------ ------------
                   $14,367,447  $11,097,008   $9,770,018
                   ============ ============ ============

  Allowance as a
   percentage of
   on-book
   receivables             5.0%         5.8%         5.9%
                   ============ ============ ============

The Company's net margin as reflected on the consolidated statements of income, excluding the pre-tax gains on the sale of the Company's investment in DealerTrack Holdings, Inc., of $16 million realized during the three months ended March 31, 2007, and $52 million and $9 million realized during the nine months ended March 31, 2007 and 2006, respectively, is as follows:

                           Three Months Ended     Nine Months Ended
                                March 31,             March 31,
                           ------------------- -----------------------
                             2007      2006       2007        2006
                           --------- --------- ----------- -----------

Finance charge income      $564,104  $414,440  $1,550,678  $1,182,251
Other income                 34,797    25,658     102,846      70,605
Interest expense           (186,610) (107,106)   (485,941)   (298,556)
                           --------- --------- ----------- -----------
  Net margin               $412,291  $332,992  $1,167,583    $954,300
                           ========= ========= =========== ===========

                           Three Months Ended     Nine Months Ended
                                March 31,             March 31,
                           ------------------- -----------------------
                             2007      2006       2007        2006
                           --------- --------- ----------- -----------

Finance charge income          15.6%     16.6%       15.9%       16.5%
Other income                    1.0       1.1         1.1         1.0
Interest expense               (5.2)     (4.3)       (5.0)       (4.2)
                           --------- --------- ----------- -----------
  Net margin as a percent
   of average on-book
   receivables                 11.4%     13.4%       12.0%       13.3%
                           ========= ========= =========== ===========

The following table provides additional information for comparative purposes related to the Company's acquisition of Bay View Acceptance Corporation on May 1, 2006, and Long Beach Acceptance Corp. on January 1, 2007:

                      Three Months Ended         Nine Months Ended
                        March 31, 2007            March 31, 2007
                   ------------------------- -------------------------

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

Origination volume  $2,020,236   $2,518,336   $5,181,483   $5,943,072

Average managed
 receivables       $11,943,812  $14,700,561  $11,653,892  $13,125,426

Net charge-offs       $153,378     $165,175     $498,883     $515,008

Net charge-offs as
 a percent of
 average
 receivables               5.2%         4.6%         5.7%         5.2%
                   ============ ============ ============ ============

Contracts
 receiving a
 payment deferral
 as an average
 quarterly
 percentage of
 average
 receivables
 outstanding               5.7%         5.0%         6.5%         6.0%
                   ============ ============ ============ ============

Net margin            $376,077     $412,291   $1,115,273   $1,167,583
                   ============ ============ ============ ============

Net margin as a
 percent of
 average on-book
 receivables              12.7%        11.4%        12.9%        12.0%
                   ============ ============ ============ ============

                        March 31, 2007
                   -------------------------

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

Managed
 receivables       $12,280,054  $15,152,886

Loan delinquency:
(% of ending
 managed
 receivables)
  31 - 60 days             4.9%         4.1%
  Greater than 60
   days                    1.7          1.5
                   ------------ ------------
    Total                  6.6%         5.6%
                   ============ ============

Allowance as a
 percentage of on-
 book receivables          5.7%         5.0%
                   ============ ============

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

SOURCE: AmeriCredit Corp.