• 4th Quarter earnings of $31 million, $0.23 per share
  • Allowance for loan losses increased to 8.2% of outstanding receivables
  • Total available liquidity of $483 million

FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 5, 2009-- AMERICREDIT CORP. (NYSE: ACF) today announced net income of $31 million, or $0.23 per share, for its fiscal fourth quarter ended June 30, 2009. AmeriCredit reported a net loss of $150 million, or $1.30 per share, for the same period a year earlier. For the fiscal year ended June 30, 2009, AmeriCredit reported net income of $14 million, or $0.11 per share, compared to a net loss of $69 million, or $0.60 per share, for the fiscal year ended June 30, 2008.

The net loss for the quarter and fiscal year ended June 30, 2008, included a $135 million after-tax impairment charge ($213 million pre-tax), or $1.17 per share, related to the write-off of goodwill recorded in connection with the acquisitions of Long Beach Acceptance Corp. and Bay View Acceptance Corporation.

Originations were $175 million for the quarter ended June 30, 2009, compared to $780 million for the same quarter last fiscal year. Originations for the fiscal year ended June 30, 2009, were $1.29 billion, compared to $6.29 billion for the prior fiscal year. Managed receivables totaled $10.93 billion at June 30, 2009, compared to $14.98 billion at June 30, 2008.

Annualized net charge-offs totaled 7.1% of average finance receivables for the three months ended June 30, 2009, compared to 5.9% for the three months ended June 30, 2008. For the fiscal year ended June 30, 2009, net charge-offs were 7.9%, compared to 6.2% last year.

Finance receivables 31-to-60 days delinquent were 6.9% of the portfolio at June 30, 2009, compared to 6.0% at June 30, 2008. Accounts more than 60 days delinquent were 3.5% of the portfolio at June 30, 2009, compared to 2.9% a year ago.

The allowance for loan losses as a percentage of finance receivables increased to 8.2% at June 30, 2009, from 7.7% at March 31, 2009 and 6.3% at June 30, 2008.

The Company had total available liquidity of $483 million at June 30, 2009, consisting of $193 million of unrestricted cash and approximately $290 million of borrowing capacity on unpledged eligible receivables.

“We are pleased to have been able to generate positive returns despite the unprecedented economic and capital market conditions that we faced over the past year,” said President and Chief Executive Officer Dan Berce. “We fully expect to see continued pressure on consumer credit from high unemployment levels and weak economic conditions, especially as we head into our seasonally weak second half of the calendar year. We will continue to focus on maximizing cash collections from our loan portfolio and protecting shareholder value.”

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 across the United States. AmeriCredit has approximately 900,000 customers and $11 billion in 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, 2008. 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 loans, the continued availability of credit enhancement for securitization transactions on acceptable terms, fluctuating interest rates, competition, regulatory and legal changes, the high degree of risk associated with subprime borrowers, 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 the Company’s management. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.

 

AmeriCredit Corp.
Consolidated Statements of Operations
(Unaudited, Dollars in Thousands, Except Per Share Amounts)

       
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009     2008 2009     2008
Revenue:
Finance charge income $ 418,965 $ 562,184 $ 1,902,684 $ 2,382,484
Other income 25,595 36,228 116,488 160,598
Gain on retirement of debt   9,886   -     63,195   -  
  454,446   598,412     2,082,367   2,543,082  
Costs and expenses:
Operating expenses 63,926 89,749 308,803 397,814
Leased vehicles depreciation 11,115 12,250 47,880 36,362
Provision for loan losses 174,678 279,145 972,381 1,130,962
Impairment of goodwill - 212,595 - 212,595
Interest expense 147,426 204,034 704,620 837,412
Restructuring charges   1,382   11,259     11,847   20,116  
  398,527   809,032     2,045,531   2,635,261  
Income (loss) before income taxes 55,919 (210,620 ) 36,836 (92,179 )
Income tax provision (benefit)   24,647   (60,407 )   22,949   (22,860 )
Net Income (loss) $ 31,272 $

(150,213

) $ 13,887 $

(69,319

)
 
Earnings (loss) per share:
Basic $ 0.24 $ (1.30 ) $ 0.11 $ (0.60 )
Diluted $ 0.23 $ (1.30 ) $ 0.11 $ (0.60 )
 
Weighted average shares   132,890,596   115,299,234     125,239,241   114,962,241  
Weighted average shares and
assumed incremental shares   133,523,867   115,299,234     129,381,343   114,962,241  
 
         

Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

 
June 30, March 31, June 30,
2009 2009 2008
Cash and cash equivalents $ 193,287 $ 120,931 $ 433,493
Finance receivables, net 10,037,329 10,983,331 14,030,299
Restricted cash – securitization notes payable 851,606 899,105 982,670
Restricted cash – credit facilities 195,079 234,054 259,699
Property and equipment, net 44,195 46,764 55,471
Leased vehicles, net 156,387 169,178 210,857
Deferred income taxes 100,139 122,262 317,319

Income tax receivable

197,579 202,817 22,897
Investment in money market fund 8,027 13,232 -
Other assets   200,586   196,216   234,505
Total assets $ 11,984,214 $ 12,987,890 $ 16,547,210
 
Credit facilities $ 1,630,133 $ 1,782,716 $ 2,928,161
Securitization notes payable 7,426,687 8,301,785 10,420,327
Senior notes 91,620 91,620 200,000
Convertible debt 462,017 486,150 750,000
Funding payable 4,700 6,097 21,519
Accrued taxes and expenses 152,940 158,115 216,387
Interest rate swap agreements 131,885 135,802 72,697
Other liabilities   20,540   11,803   41,249
Total liabilities   9,920,522   10,974,088   14,650,340
 
Shareholders’ equity   2,063,692   2,013,802   1,896,870
Total liabilities and shareholders’ equity $ 11,984,214 $ 12,987,890 $ 16,547,210
 
       

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

 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009     2008 2009     2008
Cash flows from operating activities:
Net income (loss) $ 31,272 $ (150,213 ) $ 13,887 $ (69,319 )
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 26,283 28,796 109,574 87,479
Accretion and amortization of fees 3,191 9,315 19,094 29,435
Provision for loan losses 174,678 279,145 972,381 1,130,962
Deferred income taxes 17,965 (66,930 ) 238,990 (137,949 )
Stock-based compensation expense 3,026 2,543 14,264 17,945
Amortization of warrants 2,084 10,193 45,101 10,193
Gain on retirement of debt (9,886 ) - (63,950 ) -
Impairment of goodwill - 212,595 - 212,595
Other (868 ) 228 2,773 6,126
Changes in assets and liabilities:

Income tax receivable

5,238 (4,011 ) (174,682 ) (22,897 )
Other assets 9,294 7,310 (6,704 ) (15,627 )
Accrued taxes and expenses   (6,125 )   8,106     (52,113 )   11,018  
Net cash provided by operating activities   256,152     337,077     1,118,615     1,259,961  
Cash flows from investing activities:
Purchase of receivables (168,148 ) (784,543 ) (1,280,291 ) (6,260,198 )
Principal collections and recoveries on receivables 944,783 1,378,773 4,257,637 6,108,690
Net purchases of leased vehicles - (6,377 ) - (198,826 )
Net change in money market fund 5,205 - (11,502 ) -
Net change in restricted cash and other   74,163     (4,587 )   206,201     (103,799 )
Net cash provided (used) by investing activities   856,003     583,266     3,172,045     (454,133 )
Cash flows from financing activities:
Net change in credit facilities (152,583 ) (490,811 ) (1,278,117 ) 385,611
Net change in securitization notes payable (876,328 ) (463,088 ) (2,987,424 ) (1,524,035 )
Repurchase of common stock - -

-

(127,901 )
Proceeds from issuance of common stock 2,470 11,123 3,741 25,174
Retirement of convertible debt (13,894 ) - (238,617 ) -
Other net changes   2,034     (25,100 )   (33,212 )   (39,024 )
Net cash used by financing activities   (1,038,301 )   (967,876 )   (4,533,629 )   (1,280,175 )
Net increase (decrease) in cash and
cash equivalents 73,854 (47,533 ) (242,969 ) (474,347 )
Effect of Canadian exchange rate changes on
cash and cash equivalents (1,498 ) (3,149 ) 2,763 (2,464 )
Cash and cash equivalents at beginning of period   120,931     484,175     433,493     910,304  
Cash and cash equivalents at end of period $ 193,287   $ 433,493   $ 193,287   $ 433,493  
 
         
Other Financial Data
(Unaudited, Dollars in Thousands)
 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009     2008 2009 2008
Origination volume $ 174,907 $ 780,446

$1,285,091

$ 6,293,494
Loans securitized - 920,250

1,289,082

4,634,083
Average finance receivables $ 11,419,099 $ 15,446,441

$

13,001,773

$ 16,059,129
 
 
June 30, March 31, June 30,
2009 2009 2008
Finance receivables:
Principal $ 10,927,969 $ 11,901,323

$

14,981,412

Allowance for loan losses and
nonaccretable acquisition fees   (890,640 )   (917,992 )  

(951,113

)

$ 10,037,329   $ 10,983,331  

$

14,030,299

 
 
Allowance as a percent of ending
finance receivables   8.2 %   7.7 %   6.3 %
 
 

June 30,
2009

March 31,
2009

June 30,
2008

Loan delinquency as a percent of
ending finance receivables:
31 - 60 days 6.9 % 6.0 % 6.0 %
Greater than 60 days   3.5     3.0     2.9  
Total   10.4 %   9.0 %   8.9 %
 
 
 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
Contracts receiving a payment
deferral as an average quarterly
percent of average finance
receivables 7.9 % 6.5 % 7.8 % 6.3 %
 
Net charge-offs $ 202,030 $ 227,538 $ 1,032,854 $ 1,000,084
 
 
Annualized net charge-offs as a
percent of average finance
receivables 7.1 % 5.9 % 7.9 % 6.2 %
 
 
Net recoveries as a
percent of gross repossession
charge-offs 42.1 % 43.6 % 39.8 % 44.8 %
 
 
Components of net margin:
 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
Finance charge income $ 418,965 $ 562,184 $ 1,902,684 $ 2,382,484
Other income 25,595 36,228 116,488 160,598
Interest expense   (147,426 )   (204,034 )   (704,620 )   (837,412 )
Net margin $ 297,134   $ 394,378   $ 1,314,552   $ 1,705,670  
 
 
Annualized net margin as a percent of average finance receivables:
 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
Finance charge income 14.7 % 14.6 % 14.6 % 14.8 %
Other income 0.9 0.9 0.9 1.0
Interest expense   (5.2 )   (5.3 )   (5.4 )   (5.2 )

Net Margin

  10.4 %   10.2 %   10.1 %   10.6 %
 
 
Three Months Ended Fiscal Year Ended
June 30, June 30,
2009 2008 2009 2008
Operating expenses $ 63,926   $ 89,749   $ 308,803   $ 397,814  
Annualized operating expenses as a
percent of average finance
receivables   2.2 %   2.3 %   2.4 %   2.5 %

Source: AmeriCredit Corp.

AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394