• 2nd Quarter earnings of $46 million, $0.33 per share
  • Quarterly loan originations of $379 million
  • Total available liquidity of $750 million
FORT WORTH, Texas, Jan 27, 2010 (BUSINESS WIRE) -- AMERICREDIT CORP. (NYSE: ACF) today announced net income of $46 million, or $0.33 per share, for its fiscal second quarter ended December 31, 2009. The Company reported a net loss of $35 million, or $0.29 per share, for the same period a year earlier. For the six months ended December 31, 2009, AmeriCredit reported net income of $72 million, or $0.52 per share, versus a net loss of $40 million, or $0.34 per share, for the six months ended December 31, 2008. Net loss for the quarter and six months ended December 31, 2008, were revised, from a net loss of $26 million, or $0.21 per share, and $27 million, or $0.23 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changes the accounting for convertible bonds.

Originations were $379 million for the quarter ended December 31, 2009, compared to $321 million for the same quarter last fiscal year. Originations for the six months ended December 31, 2009, were $608 million, compared to $900 million for the same period a year earlier. Finance receivables totaled $9.3 billion at December 31, 2009, compared to $13.0 billion at December 31, 2008.

Annualized net charge-offs were 8.9% of average finance receivables for the quarter ended December 31, 2009, compared to 9.5% for the quarter ended December 31, 2008. For the six months ended December 31, 2009, annualized net charge-offs were 8.6%, compared to 8.3% for the same period last year.

Finance receivables 31-to-60 days delinquent were 7.7% of the portfolio at December 31, 2009, compared to 7.8% at December 31, 2008. Accounts more than 60 days delinquent were 3.7% of the portfolio at December 31, 2009, compared to 4.2% a year ago.

The allowance for loan losses as a percentage of finance receivables was 7.7% at December 31, 2009, compared to 8.2% at September 30, 2009 and 7.1% at December 31, 2008.

The Company had total available liquidity of $750 million at December 31, 2009, consisting of $320 million of unrestricted cash and approximately $430 million of borrowing capacity on unpledged eligible receivables.

"We had an outstanding December quarter with year-over-year improvements in all key aspects of our business - originations, credit performance and earnings," said President and Chief Executive Officer Dan Berce. "While we remain cautious about the economic recovery, our strong balance sheet and improving credit trends combined with a more favorable capital markets environment, position us well to move forward and continue to rebuild our business in 2010."

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 800,000 customers and $9 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, 2009. 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 Six Months Ended
December 31, December 31,
2009 2008 2009 2008
(Revised) (Revised)
Revenue:
Finance charge income $ 363,100 $ 497,560 $ 752,896 $ 1,031,533
Other income 23,655 30,626 47,143 61,702
Gain on retirement of debt - 30,411 - 31,405
386,755 558,597 800,039 1,124,640
Costs and expenses:
Operating expenses 76,410 84,344 145,272 168,599
Leased vehicles expenses 10,221 12,157 20,331 23,071
Provision for loan losses 106,198 288,022 264,149 562,887
Interest expense 121,760 224,775 251,908 425,429
Restructuring charges (49 ) 2,104 (86 ) 2,655
314,540 611,402 681,574 1,182,641
Income (loss) before income taxes 72,215 (52,805 ) 118,465 (58,001 )
Income tax provision (benefit) 26,186 (17,803 ) 46,675 (17,725 )
Net income (loss) $ 46,029 $ (35,002 ) $ 71,790 $ (40,276 )
Earnings (loss) per share:
Basic $ 0.34 $ (0.29 ) $ 0.54 $ (0.34 )
Diluted $ 0.33 $ (0.29 ) $ 0.52 $ (0.34 )
Weighted average shares 133,492,069 120,106,666 133,361,014 118,189,273
Weighted average shares and
assumed incremental shares 137,630,694 120,106,666 136,857,076 118,189,273

Consolidated Balance Sheets

(Unaudited, Dollars in Thousands)

December 31, June 30, December 31,
2009 2009 2008
(Revised) (Revised)
Cash and cash equivalents $ 319,644 $ 193,287 $ 166,690
Finance receivables, net 8,587,917 10,037,329 12,076,156
Restricted cash - securitization notes payable 850,212 851,606 883,734
Restricted cash - credit facilities 128,199 195,079 164,154
Property and equipment, net 40,270 44,195 49,889
Leased vehicles, net 131,326 156,387 184,673
Deferred income taxes 19,186 75,782 265,650
Income tax receivable 31,580 197,579 72,984
Other assets 181,170 207,083 256,369
Total assets $ 10,289,504 $ 11,958,327 $ 14,120,299
Credit facilities $ 709,927 $ 1,630,133 $ 1,942,362
Securitization notes payable 6,590,644 7,426,687 9,253,487
Senior notes 91,620 91,620 91,620
Convertible debt 403,105 392,514 423,002
Accrued taxes and expenses 159,874 157,640 202,103
Interest rate swap agreements 98,513 131,885 162,935
Other liabilities 17,429 20,540 11,378
Total liabilities 8,071,112 9,851,019 12,086,887

Shareholders' equity (outstanding common shares of
133,857,728, 133,171,366, and 131,634,989,
respectively)

2,218,392 2,107,308 2,033,412
Total liabilities and shareholders' equity $ 10,289,504 $ 11,958,327 $ 14,120,299

Consolidated Statements of Cash Flows

(Unaudited, Dollars in Thousands)

Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
(Revised) (Revised)
Cash flows from operating activities:
Net income (loss) $ 46,029 $ (35,002 ) $ 71,790 $ (40,276 )
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 20,822 31,909 43,646 57,794
Accretion and amortization of fees 1,637 5,029 4,012 12,024
Provision for loan losses 106,198 288,022 264,149 562,887
Deferred income taxes 29,060 43,084 44,577 37,922
Non-cash interest on convertible debt 5,342 6,009 10,591 11,617
Stock-based compensation expense 3,938 3,653 6,906 7,547
Amortization of warrants - 28,586 1,968 40,934
Gain on retirement of debt - (31,166 ) - (32,160 )
Other (1,475 ) 2,877 (8,292 ) 6,547
Changes in assets and liabilities:
Income tax receivable 52,810 (51,152 ) 166,017 (50,087 )
Other assets 1,896 (10,570 ) 3,201 (10,218 )
Accrued taxes and expenses 3,083 (15,009 ) (3,574 ) (8,049 )
Net cash provided by operating activities 269,340 266,270 604,991 596,482
Cash flows from investing activities:
Purchases of receivables (367,738 ) (326,908 ) (585,658 ) (913,555 )
Principal collections and recoveries on receivables 868,495 1,024,477 1,780,616 2,237,921
Net change in restricted cash and other 70,383 124,254 83,718 161,136
Net cash provided by investing activities 571,140 821,823 1,278,676 1,485,502
Cash flows from financing activities:
Net change in credit facilities (309,141 ) (1,034,442 ) (920,206 ) (967,429 )
Net change in securitization notes payable (677,185 ) (27,178 ) (838,135 ) (1,158,040 )
Proceeds from issuance of common stock 5,643 1,253 6,779 1,267
Retirement of convertible debt - (100,425 ) - (214,473 )
Other net changes (2,273 ) (6,028 ) (5,096 ) (12,376 )
Net cash used by financing activities (982,956 ) (1,166,820 ) (1,756,658 ) (2,351,051 )
Net (decrease) increase in cash and
cash equivalents (142,476 ) (78,727 ) 127,009 (269,067 )
Effect of Canadian exchange rate changes on
cash and cash equivalents 14 1,665 (652 ) 2,264
Cash and cash equivalents at beginning of period 462,106 243,752 193,287 433,493
Cash and cash equivalents at end of period $ 319,644 $ 166,690 $ 319,644 $ 166,690

Other Financial Data

(Unaudited, Dollars in Thousands)

Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
Origination volume $ 378,595 $ 320,830 $ 607,668 $ 900,120
Loans securitized $ 294,490 $ 1,289,082 $ 1,275,546 $ 1,289,082
Average finance receivables $ 9,641,769 $ 13,547,116 $ 10,062,216 $ 14,045,482
December 31, June 30, December 31,
2009 2009 2008
Finance receivables:
Principal $ 9,304,976 $ 10,927,969 $ 12,999,132
Allowance for loan losses and
nonaccretable acquisition fees (717,059 ) (890,640 ) (922,976 )
$ 8,587,917 $ 10,037,329 $ 12,076,156
Allowance as a percent of ending
finance receivables 7.7 % 8.2 % 7.1 %
December 31,

2009

June 30,

2009

December 31,

2008

Loan delinquency as a percent of
ending finance receivables:
31 - 60 days 7.7 % 6.9 % 7.8 %
Greater than 60 days 3.7 3.5 4.2
Total 11.4 % 10.4 % 12.0 %
Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
Contracts receiving a payment
deferral as an average quarterly
percentage of average finance
receivables 8.5 % 8.2 % 8.2 % 7.7 %
Net charge-offs $ 215,097 $ 325,165 $ 437,730 $ 591,024
Annualized net charge-offs as a
percent of average finance receivables 8.9 % 9.5 % 8.6 % 8.3 %
Net recoveries as a
percent of gross repossession
charge-offs 42.2 % 37.1 % 42.5 % 39.3 %
Components of net margin:
Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
(Revised) (Revised)
Finance charge income $ 363,100 $ 497,560 $ 752,896 $ 1,031,533
Other income 23,655 30,626 47,143 61,702
Interest expense (121,760 ) (224,775 ) (251,908 ) (425,429 )
Net margin $ 264,995 $ 303,411 $ 548,131 $ 667,806
Annualized net margin as a percent of average finance receivables:
Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
(Revised) (Revised)
Finance charge income 14.9 % 14.6 % 14.8 % 14.5 %
Other income 1.0 0.9 0.9 0.9
Interest expense (5.0 ) (6.6 ) (4.9 ) (6.0 )

Net margin

10.9 % 8.9 % 10.8 % 9.4 %
Three Months Ended Six Months Ended
December 31, December 31,
2009 2008 2009 2008
Operating expenses $ 76,410 $ 84,344 $ 145,272 $ 168,599
Annualized operating expenses as a
percent of average finance
receivables 3.1 % 2.5 % 2.9 % 2.4 %

SOURCE: AmeriCredit Corp.

AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394