• 3rd Quarter earnings of $63 million, $0.45 per share
  • Quarterly loan originations of $624 million
  • Total available liquidity of $748 million

FORT WORTH, Texas, Apr 21, 2010 (BUSINESS WIRE) --AMERICREDIT CORP. (NYSE: ACF) today announced net income of $63 million, or $0.45 per share, for its fiscal third quarter ended March 31, 2010. The Company reported a net loss of $2 million, or $0.02 per share, for the same period a year earlier. For the nine months ended March 31, 2010, AmeriCredit reported net income of $135 million, or $0.98 per share, versus a net loss of $43 million, or $0.35 per share, for the nine months ended March 31, 2009. Results, for the three and nine months ended March 31, 2009, were revised, from net income of $10 million, or $0.07 per share, and a net loss of $17 million, or $0.14 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changed the accounting for convertible bonds.

Originations were $624 million for the quarter ended March 31, 2010, compared to $379 million for the quarter ended December 31, 2009 and $210 million for the quarter ended March 31, 2009. Originations for the nine months ended March 31, 2010, were $1.2 billion, compared to $1.1 billion for the same period a year earlier. Finance receivables totaled $8.8 billion at March 31, 2010, compared to $11.9 billion at March 31, 2009.

Annualized net charge-offs were 7.6% of average finance receivables for the quarter ended March 31, 2010, compared to 7.8% for the quarter ended March 31, 2009. For the nine months ended March 31, 2010, annualized net charge-offs were 8.3%, compared to 8.2% for the same period last year.

Finance receivables 31-to-60 days delinquent were 5.3% of the portfolio at March 31, 2010, compared to 6.0% at March 31, 2009. Accounts more than 60 days delinquent were 2.2% of the portfolio at March 31, 2010, compared to 3.0% a year ago.

The allowance for loan losses as a percentage of finance receivables was 7.1% at March 31, 2010, compared to 7.7% at December 31, 2009 and March 31, 2009.

The Company had total available liquidity of $748 million at March 31, 2010, consisting of $497 million of unrestricted cash and approximately $251 million of borrowing capacity on unpledged eligible receivables.

"We had an exceptional March quarter on many fronts. The steps we have taken since early 2008 to reposition our loan portfolio for higher profitability are beginning to surface in many of our key metrics, from sustained improvements in credit performance to higher portfolio net interest margin to historically high loan-level returns," said President and Chief Executive Officer Dan Berce. "Current favorable market conditions provide us with a unique opportunity to originate highly profitable loans that will generate solid returns in future years."

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 about 800,000 customers and approximately $9 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit http://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 Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
  (Revised)   (Revised)
Revenue:
Finance charge income $ 339,892 $ 452,186 $ 1,092,788 $ 1,483,719
Other income 20,930 29,191 68,073 90,893
Gain on retirement of debt 283 11,048 283 42,453
361,105 492,425 1,161,144 1,617,065
Costs and expenses:
Operating expenses 75,215 76,278 220,487 244,877
Leased vehicles expenses 8,688 13,694 29,019 36,765
Provision for loan losses 74,583 234,816 338,732 797,703
Interest expense 106,584 148,237 358,492 573,666
Restructuring charges 220 7,810 134 10,465
265,290 480,835 946,864 1,663,476
Income (loss) before income taxes 95,815 11,590 214,280 (46,411 )
Income tax provision (benefit) 32,609 13,996 79,284 (3,729 )
Net income (loss) $ 63,206 $ (2,406 ) $ 134,996 $ (42,682 )
Earnings (loss) per share:
Basic $ 0.47 $ (0.02 ) $ 1.01 $ (0.35 )
Diluted $ 0.45 $ (0.02 ) $ 0.98 $ (0.35 )
Weighted average shares 134,053,846 131,914,885 133,588,587 122,697,685
Weighted average shares and
assumed incremental shares 139,231,152 131,914,885 137,645,064 122,697,685
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, June 30, March 31,
2010 2009 2009
  (Revised) (Revised)
Cash and cash equivalents $ 497,329 $ 193,287 $ 120,931
Finance receivables, net 8,187,125 10,037,329 10,983,331
Restricted cash - securitization notes payable 989,356 851,606 899,105
Restricted cash - credit facilities 153,244 195,079 234,054
Property and equipment, net 38,838 44,195 46,764
Leased vehicles, net 117,037 156,387 169,178
Deferred income taxes 83,249 75,782 87,729
Income tax receivable - 197,579 202,817
Other assets 157,473 207,083 207,693
Total assets $ 10,223,651 $ 11,958,327 $ 12,951,602
Credit facilities $ 658,137 $ 1,630,133 $ 1,782,716
Securitization notes payable 6,462,494 7,426,687 8,301,785
Senior notes 70,620 91,620 91,620
Convertible debt 408,539 392,514 406,767
Accrued taxes and expenses 226,642 157,640 164,212
Interest rate swap agreements 83,946 131,885 135,802
Other liabilities 11,840 20,540 11,803
Total liabilities 7,922,218 9,851,019 10,894,705

Shareholders' equity (outstanding common shares of

134,512,524, 133,171,366, and 132,778,081,

respectively)

2,301,433 2,107,308 2,056,897
Total liabilities and shareholders' equity $ 10,223,651 $ 11,958,327 $ 12,951,602
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
  (Revised)   (Revised)
Cash flows from operating activities:
Net income (loss) $ 63,206 $ (2,406 ) $ 134,996 $ (42,682 )
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 18,351 25,061 61,997 82,855
Accretion and amortization of fees 717 3,879 4,729 15,903
Provision for loan losses 74,583 234,816 338,732 797,703
Deferred income taxes (68,794 ) 181,072 (24,217 ) 218,994
Non-cash interest charges on convertible debt 5,434 5,291 16,025 16,908
Stock-based compensation expense 4,604 3,691 11,510 11,238
Amortization of warrant costs - 2,083 1,968 43,017
Gain on retirement of debt (283 ) (11,048 ) (283 ) (43,208 )
Other (8,101 ) (2,906 ) (16,393 ) 3,641
Changes in assets and liabilities:
Income tax receivable 31,385 (129,833 ) 197,402 (179,920 )
Other assets 8,973 (5,780 ) 12,174 (15,998 )
Accrued taxes and expenses 61,503 (37,939 ) 57,929 (45,988 )
Net cash provided by operating activities 191,578 265,981 796,569 862,463
Cash flows from investing activities:
Purchases of receivables (610,643 ) (198,588 ) (1,196,301 ) (1,112,143 )
Principal collections and recoveries on receivables 952,548 1,074,933 2,733,164 3,312,854
Net change in restricted cash and other (144,897 ) (45,805 ) (61,179 ) 115,331
Net cash provided by investing activities 197,008 830,540 1,475,684 2,316,042
Cash flows from financing activities:
Net change in credit facilities (51,790 ) (158,105 ) (971,996 ) (1,125,534 )
Net change in securitization notes payable (129,064 ) (953,056 ) (967,199 ) (2,111,096 )
Proceeds from issuance of common stock 5,929 4 12,708 1,271
Retirement of debt (20,425 ) (10,250 ) (20,425 ) (224,723 )
Other net changes (15,575 ) (22,870 ) (20,671 ) (35,246 )
Net cash used by financing activities (210,925 ) (1,144,277 ) (1,967,583 ) (3,495,328 )
Net increase (decrease) in cash and
cash equivalents 177,661 (47,756 ) 304,670 (316,823 )
Effect of Canadian exchange rate changes on
cash and cash equivalents 24 1,997 (628 ) 4,261
Cash and cash equivalents at beginning of period 319,644 166,690 193,287 433,493
Cash and cash equivalents at end of period $ 497,329 $ 120,931 $ 497,329 $ 120,931
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
Origination volume $ 623,855 $ 210,064 $ 1,231,523 $ 1,110,184
Loans securitized 927,758

-

2,203,304 1,289,082
Average finance receivables $ 9,042,982 $ 12,469,678 $ 9,727,552 $ 13,527,449
March 31, June 30, March 31,
2010 2009 2009
Finance receivables:
Principal $ 8,810,374 $ 10,927,969 $ 11,901,323
Allowance for loan losses and
nonaccretable acquisition fees (623,249 ) (890,640 ) (917,992 )
$ 8,187,125 $ 10,037,329 $ 10,983,331
Allowance as a percent of ending
finance receivables 7.1 % 8.2 % 7.7 %
March 31,

2010

June 30,

2009

March 31,

2009

Loan delinquency as a percent of
ending finance receivables:
31 - 60 days 5.3 % 6.9 % 6.0 %
Greater than 60 days 2.2 3.5 3.0
Total 7.5 % 10.4 % 9.0 %
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
Contracts receiving a payment
deferral as an average quarterly
percentage of average finance
receivables 7.1 % 8.0 % 7.8 % 7.8 %
Net charge-offs $ 168,393 $ 239,800 $ 606,123 $ 830,824
Annualized net charge-offs as a
percent of average finance
receivables 7.6 % 7.8 % 8.3 % 8.2 %
Net recoveries as a
percent of gross repossession
charge-offs 44.9 % 39.0 % 43.3 % 39.2 %

Components of net margin:

Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
  (Revised)   (Revised)
Finance charge income $ 339,892 $ 452,186 $ 1,092,788 $ 1,483,719
Other income 20,930 29,191 68,073 90,893
Interest expense (106,584 ) (148,237 ) (358,492 ) (573,666 )
Net margin $ 254,238 $ 333,140 $ 802,369 $ 1,000,946
Annualized net margin as a percent of average finance receivables:
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
  (Revised)   (Revised)
Finance charge income 15.2 % 14.7 % 15.0 % 14.6 %
Other income 0.9 0.9 0.9 0.9
Interest expense (4.7 ) (4.8 ) (4.9 ) (5.6 )

Net margin

11.4 % 10.8 % 11.0 % 9.9 %
Three Months Ended Nine Months Ended
March 31, March 31,
2010 2009 2010 2009
Operating expenses $ 75,215 $ 76,278 $ 220,487 $ 244,877
Annualized operating expenses as a
percent of average finance
receivables 3.4 % 2.5 % 3.0 % 2.4 %

SOURCE: AmeriCredit Corp.

AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394