• 1st Quarter earnings of $62 million, $0.49 per share
  • Credit results showed primarily seasonal deterioration
  • Originations totaled $2.38 billion for the quarter
  • FY08 earnings guidance updated

FORT WORTH, Texas, Oct. 24, 2007 /PRNewswire-FirstCall/ -- AMERICREDIT CORP. (NYSE: ACF) today announced net income of $62 million, or $0.49 per share, for its fiscal first quarter ended September 30, 2007. AmeriCredit reported net income of $74 million, or $0.54 per share, for the same period a year earlier. Operating results include Long Beach Acceptance Corp. since its acquisition on January 1, 2007.

Automobile loan purchases increased to $2.38 billion for the first quarter of fiscal year 2008, compared to $1.68 billion for the same quarter last fiscal year. Managed receivables totaled $16.40 billion at September 30, 2007, compared to $12.33 billion at September 30, 2006.

Annualized net charge-offs were 5.4% of average managed receivables for both the September 2007 and September 2006 quarters.

Managed receivables 31-to-60 days delinquent were 5.5% of the portfolio at September 30, 2007, compared to 6.0% at September 30, 2006. Accounts more than 60 days delinquent were 2.6% of the portfolio compared to 2.5% a year ago.

"While we saw normal seasonal credit deterioration during the September quarter, we also experienced weaker than expected results primarily from loans originated in 2006. As a result of this underperformance and a potentially softer economy in the near term, we have boosted the provision for loan losses for the quarter, which reduced our net income," said AmeriCredit President and Chief Executive Officer Dan Berce.

During the quarter, the Company repurchased $128 million of its common stock and has $172 million remaining under its board-approved stock repurchase plan. Shareholders' equity was $2.01 billion at September 30, 2007, resulting in a book value of $17.61 per share and tangible book value of $15.78 per share.

"From a funding perspective, we were pleased with our execution in the capital markets. We have completed $3.5 billion in securitization transactions and obtained $2.0 billion in warehouse funding commitments since July 1, 2007. Our liquidity position remains solid with over $637 million in unrestricted cash at September 30, 2007," said Chief Financial Officer Chris Choate.

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 and the related assumptions have been updated from guidance provided on August 8, 2007, to reflect changes in the Company's current business outlook and the impact of stock repurchased through September 30, 2007.

    Net income and EPS forecasts


                                                 Revised             Previous
                                      Fiscal year ending   Fiscal year ending
                                           June 30, 2008        June 30, 2008
                                           -------------        -------------
    Net income ($ millions)                  $295 - $320          $320 - $350

    Earnings per share                     $2.30 - $2.50        $2.50 - $2.75


The forecasts for fiscal year 2008 incorporate, but are not limited to, the following assumptions:

  • New loan origination volume of $9.0 to $9.5 billion;
  • Net interest margin of 10.5% to 11.0% of average receivables;
  • Operating expenses excluding leased vehicles depreciation of 2.5% to 2.7% of the portfolio;
  • Credit losses of between 4.5% and 5.0%; and
  • Provision for loan losses as a percent of average receivables of between 5.0% and 5.5%.

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 more than $16 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, 2007. Such risks include -- but are not limited to -- variable economic conditions, adverse portfolio performance, volatile wholesale vehicle 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
                                 September 30,
                          ------------------------
                               2007         2006
                          -----------  -----------
    Revenue:
         Finance charge
          income             $611,858     $484,357
         Servicing income         376        7,459
         Other income          40,440       31,805
                          -----------  -----------
                              652,674      523,621
                          -----------  -----------
    Costs and expenses:
         Operating
          expenses            104,965       88,288
         Leased vehicles
          depreciation          5,585            -
         Provision for
          loan losses         244,645      173,905
         Interest expense     211,261      143,471
         Restructuring
          charges                (130)         309
                          -----------  -----------
                              566,326      405,973
                          -----------  -----------
    Income before income
     taxes                     86,348      117,648

    Income tax provision       24,529       43,412
                          -----------  -----------
         Net income           $61,819      $74,236
                          ===========  ===========
    Earnings per share:
         Basic                  $0.53        $0.59
                          ===========  ===========
         Diluted                $0.49        $0.54
                          ===========  ===========
    Weighted average
     shares               115,550,318  125,278,738
                          ===========  ===========
    Weighted average
     shares and
     assumed incremental
     shares               128,111,826  139,718,283
                          ===========  ===========



     Consolidated Balance Sheets
     (Unaudited, Dollars in Thousands)


                                       September 30,   June 30,  September 30,
                                           2007         2007         2006
                                      ------------  ------------  ------------
    Cash and cash equivalents             $637,070     $910,304     $840,767
    Finance receivables, net            15,532,786   15,102,370   11,520,531
    Restricted cash - securitization
     notes payable                         994,813    1,014,353    1,350,602
    Restricted cash - credit facilities    374,378      166,884      759,411
    Credit enhancement assets                5,833        5,919       24,075
    Property and equipment, net             58,717       58,572       55,509
    Leased vehicles, net                   169,701       33,968            -
    Deferred income taxes                  239,812      151,704       95,625
    Goodwill                               209,417      208,435        8,914
    Other assets                           205,696      158,511      243,481
                                      ------------  ------------  ------------
         Total assets                  $18,428,223  $17,811,020  $14,898,915
                                      ============  ============  ============
    Credit facilities                   $2,212,780   $2,541,702   $1,971,095
    Securitization notes payable        12,881,613   11,939,447   10,081,115
    Senior notes                           200,000      200,000            -
    Convertible debt                       750,000      750,000      750,000
    Funding payable                         70,438       87,474      196,089
    Accrued taxes and expenses             265,435      199,059      166,506
    Other liabilities                       37,564       18,188       10,964
                                      ------------  ------------  ------------
         Total liabilities              16,417,830   15,735,870   13,175,769
                                      ------------  ------------  ------------
    Shareholders' equity                 2,010,393    2,075,150    1,723,146
                                      ------------  ------------  ------------
         Total liabilities and
          shareholders' equity         $18,428,223  $17,811,020  $14,898,915
                                      ============  ============  ============



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

                                             Three Months Ended
                                               September 30,
                                         ------------------------
                                              2007          2006
                                         -----------  -----------
    Cash flows from operating activities:
       Net income                           $61,819       $74,236
       Adjustments to reconcile net
        income to net cash provided by
        operating activities:
         Depreciation and amortization       16,955         6,078
         Accretion and amortization of fees   4,688        (7,487)
         Provision for loan losses          244,645       173,905
         Deferred income taxes               24,529        43,412
         Stock-based compensation expense     7,032         3,886
         Other                                  438        (3,343)
       Changes in assets and liabilities:
        Other assets                        (39,057)      (35,822)
        Accrued taxes and expenses          (40,810)      (38,528)
                                         -----------  -----------
    Net cash provided by operating
     activities                             280,239       216,337
                                         -----------  -----------
    Cash flows from investing activities:
       Purchase of receivables           (2,290,411)   (1,790,828)
       Principal collections and
        recoveries on receivables         1,585,813     1,331,107
       Distributions from gain on
        sale Trusts                             173        76,017
       Net purchases of property and
        equipment                            (2,877)       (1,064)
       Net purchases of leased vehicles    (131,713)            -
       Net change in restricted cash
        and other                          (196,244)   (1,104,797)
                                         -----------  -----------
    Net cash used by investing
     activities                          (1,035,259)   (1,489,565)
                                         -----------  -----------
    Cash flows from financing
     activities:
       Net change in credit facilities     (333,457)     (135,187)
       Net change in securitization
        notes payable                       940,327     1,561,410
       Proceeds from issuance of
        convertible debt                          -       497,376
       Repurchase of common stock          (127,901)     (323,964)
       Proceeds from issuance of
        common stock                         10,199        14,020
       Other net changes                     (9,064)      (12,799)
                                         -----------  -----------
    Net cash provided by financing
     activities                             480,104     1,600,856
                                         -----------  -----------
    Net (decrease) increase in cash
     and cash equivalents                  (274,916)      327,628
    Effect of Canadian exchange rate
     changes on cash and cash equivalents     1,682          (101)
    Cash and cash equivalents at
     beginning of period                    910,304       513,240
                                         -----------  -----------
    Cash and cash equivalents at end
     of period                             $637,070      $840,767
                                         ===========  ===========



     Other Financial Data
     (Unaudited, Dollars in Thousands)

                                              Three Months Ended
                                                 September 30,
                                         -------------------------
                                              2007          2006
                                         ------------  -----------
    Origination volume                    $2,381,217    $1,683,969
    Loans securitized                      2,688,182     2,373,941

    Average on-book receivables          $16,188,641   $11,953,970
    Average gain on sale receivables          21,810       304,795
                                         ------------  -----------
    Average managed receivables          $16,210,451   $12,258,765
                                         ============  ===========



                             September 30,   June 30,  September 30,
                                 2007          2007         2006
                             ------------  -----------  -----------


    On-book receivables       $16,377,528  $15,922,458  $12,218,713
    Gain on sale receivables       19,844       24,091      107,314
                             ------------  -----------  -----------
    Managed receivables       $16,397,372  $15,946,549  $12,326,027
                             ============  ===========  ===========


                                              Three Months Ended
                                                September 30,
                                            ---------------------
                                              2007          2006
                                            ---------   ---------
    Operating expenses                      $104,965      $88,288
                                            =========   =========
    Annualized operating expenses as a
     percent of average managed receivables     2.6%         2.9%
                                            =========   =========
    Tax rate                                   28.4%        36.9%
                                            =========   =========


                                     September 30,   June 30,    September 30,
                                         2007         2007           2006
                                     ------------   ---------    ------------
    Loan delinquency:
         On-book:
         (% of ending on-book
          receivables)
            31 - 60 days                  5.5%         4.7%           6.0%
            Greater than 60 days          2.6          2.1            2.5
                                     ------------   ---------    ------------
              Total                       8.1%         6.8%           8.5%
                                     ============   =========    ============
         Managed portfolio:
         (% of ending managed
          receivables)
            31  - 60 days                 5.5%         4.7%           6.0%
            Greater than 60 days          2.6          2.1            2.5
                                     ------------   ---------    ------------
              Total                       8.1%         6.8%           8.5%
                                     ============   =========    ============



                                                  Three Months Ended
                                                     September 30,
                                                  -------------------
                                                    2007       2006
                                                  --------   --------
    Contracts receiving a payment deferral
     as an average quarterly percentage of
     average receivables outstanding:
      On-book (% of average on-book receivables)      6.0%       6.3%
                                                  ========   ========
      Managed portfolio (%of average managed
       receivables)                                   6.0%       6.3%
                                                  ========   ========


                                                   Three Months Ended
                                                     September 30,
                                                  -------------------
                                                    2007        2006
                                                  --------   --------
    Net charge-offs:
         On-book                                  $219,991   $161,864
                                                  ========   ========
         Managed portfolio:                       $220,013   $166,396
                                                  ========   ========
    Annualized net charge-offs as a percent of
     average receivables:
     On-book                                          5.4%       5.4%
                                                  ========   ========
     Managed portfolio:                               5.4%       5.4%
                                                  ========   ========

    Annualized net recoveries as a percent of
     gross repossession charge-offs:
     On-book                                         48.8%      48.8%
                                                  ========   ========
     Managed portfolio:                              48.8%      48.6%
                                                  ========   ========



                                   September 30,    June 30,    September 30,
                                       2007           2007           2006
                                   ------------    ------------  ------------
    On-book receivables:
         Principal                 $16,377,528     $15,922,458   $12,218,713
         Allowance for loan losses
          and nonaccretable
          acquisition fees            (844,742)       (820,088)     (698,182)
                                   ------------    ------------  ------------
                                   $15,532,786     $15,102,370   $11,520,531
                                   ============    ============  ============
         Allowance as a percentage
          of on-book receivables           5.2%            5.2%          5.7%
                                   ============    ============  ============


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

                                Three Months Ended
                                   September 30,
                               --------------------
                                 2007        2006
                               --------    --------

    Finance charge income      $611,858    $484,357
    Other income                 40,440      31,805
    Interest expense           (211,261)   (143,471)
                               --------    --------
         Net margin            $441,037    $372,691
                               ========    ========


                                   Three Months Ended
                                      September 30,
                                  --------------------
                                    2007        2006
                                  --------    --------
    Finance charge income           15.0%       16.1%
    Other income                     1.0         1.1
    Interest expense                (5.2)       (4.8)
                                  --------    --------
      Annualized net margin as a
       percent of average on-book
       receivables                  10.8%       12.4%
                                  ========    ========


    The following table provides additional information for comparative
purposes related to the Company's acquisition of Long Beach Acceptance Corp.
("LBAC") on January 1, 2007:


                                                    Three Months Ended
                                                    September 30, 2007
                                               -----------------------------
                                                   Total
                                                  Company          Total
                                                 Excluding
                                                   LBAC
                                               -------------    ------------
    Origination volume                           $2,108,982       $2,381,217
    Average managed receivables                 $14,140,562      $16,210,451
    Net charge-offs                                $203,377         $220,013
    Annualized 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                    6.5%             6.0%
                                               =============    =============
    Net margin                                     $408,451         $441,037
                                               =============    =============
    Annualized net margin as a percent of
     average on-book receivables                       11.5%            10.8%
                                               =============    =============


                                                    September 30, 2007
                                               -----------------------------
                                                  Total
                                                 Company           Total
                                                Excluding
                                                  LBAC
                                               -------------    -------------
    Managed receivables                         $14,302,421      $16,397,372
    Loan delinquency:
    (% of ending managed receivables)
         31 - 60 days                                   6.0%             5.5%
         Greater than 60 days                           2.8              2.6
                                               -------------    -------------
              Total                                     8.8%             8.1%
                                               =============    =============
    Allowance as a percentage of on-book
     receivables                                        5.5%             5.2%
                                               =============    =============



     Contact:

     Investor Relations                        Media Relations
     Caitlin DeYoung                           John Hoffmann
     (817) 302-7394                            (817) 302-7627

SOURCE AmeriCredit Corp.

CONTACT: Investor Relations, Caitlin DeYoung, +1-817-302-7394, or Media Relations, John Hoffmann, +1-817-302-7627, both of AmeriCredit Corp.