Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - General Motors Financial Company, Inc. | d8k.htm |
Exhibit 99.1
GM FINANCIAL REPORTS SEPTEMBER QUARTER OPERATING RESULTS
| • | Earnings of $51 million, including after-tax acquisition expenses of $30 million |
| • | Loan originations of $959 million |
| • | Annualized net losses were 5.4% |
| • | Total available liquidity of $856 million |
FORT WORTH, TEXAS Nov. 9, 2010 – GENERAL MOTORS FINANCIAL COMPANY, INC., formerly known as AmeriCredit Corp. (“GM Financial” or the “Company”), announced net income of $51 million for the quarter ended September 30, 2010. Net income for the quarter was adversely impacted by $43 million ($30 million after tax) of expenses directly related to the acquisition of the Company by General Motors. The Company reported net income of $26 million for the same period a year earlier.
Originations were $959 million for the quarter ended September 30, 2010, compared to $906 million for the quarter ended June 30, 2010 and $229 million for the quarter ended September 30, 2009. Finance receivables totaled $8.7 billion at September 30, 2010, compared to $10.0 billion at September 30, 2009.
Annualized net charge-offs were 5.4% of average finance receivables for the quarter ended September 30, 2010, compared to 8.4% for the quarter ended September 30, 2009.
Finance receivables 31-to-60 days delinquent were 6.2% of the portfolio at September 30, 2010, compared to 7.6% at September 30, 2009. Accounts more than 60 days delinquent were 2.5% of the portfolio at September 30, 2010, compared to 3.8% a year ago.
The allowance for loan losses as a percentage of finance receivables was 6.1% at September 30, 2010, compared to 6.6% at June 30, 2010 and 8.2% at September 30, 2009.
The Company had total available liquidity of $856 million at September 30, 2010, consisting of $538 million of unrestricted cash and approximately $318 million of borrowing capacity on unpledged eligible receivables.
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About GM Financial
General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States. GM Financial has approximately 3,000 employees in the U.S. and Canada, 800,000 customers and $9 billion in auto receivables. The company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com
Forward-Looking Statements
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, 2010. 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.
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General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, Dollars in Thousands)
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Revenue: |
||||||||
| Finance charge income |
$ | 342,349 | $ | 389,796 | ||||
| Other income |
30,275 | 23,488 | ||||||
| 372,624 | 413,284 | |||||||
| Costs and expenses: |
||||||||
| Operating expenses |
68,855 | 68,862 | ||||||
| Leased vehicles expenses |
6,539 | 10,110 | ||||||
| Provision for loan losses |
74,618 | 157,951 | ||||||
| Interest expense |
89,364 | 130,148 | ||||||
| Acquisition expenses |
42,651 | |||||||
| Restructuring charges |
(39 | ) | (37 | ) | ||||
| 281,988 | 367,034 | |||||||
| Income before income taxes |
90,636 | 46,250 | ||||||
| Income tax provision |
39,336 | 20,489 | ||||||
| Net income |
$ | 51,300 | $ | 25,761 | ||||
###
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Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
| September 30, 2010 |
June 30, 2010 |
September 30, 2009 |
||||||||||
| Cash and cash equivalents |
$ | 537,529 | $ | 282,273 | $ | 462,106 | ||||||
| Finance receivables, net |
8,147,086 | 8,160,208 | 9,195,075 | |||||||||
| Restricted cash – securitization notes payable |
975,942 | 930,155 | 873,304 | |||||||||
| Restricted cash – credit facilities |
134,468 | 142,725 | 170,281 | |||||||||
| Property and equipment, net |
36,592 | 37,734 | 42,054 | |||||||||
| Leased vehicles, net |
54,730 | 94,677 | 143,819 | |||||||||
| Deferred income taxes |
77,999 | 81,836 | 54,659 | |||||||||
| Income tax receivable |
84,387 | |||||||||||
| Other assets |
143,064 | 151,425 | 190,047 | |||||||||
| Total assets |
$ | 10,107,410 | $ | 9,881,033 | $ | 11,215,732 | ||||||
| Credit facilities |
$ | 617,415 | $ | 598,946 | $ | 1,019,068 | ||||||
| Securitization notes payable |
6,273,224 | 6,108,976 | 7,266,456 | |||||||||
| Senior notes |
70,620 | 70,620 | 91,620 | |||||||||
| Convertible debt |
419,693 | 414,068 | 397,763 | |||||||||
| Accrued taxes and expenses |
208,438 | 210,013 | 153,725 | |||||||||
| Interest rate swap agreements |
60,895 | 70,421 | 119,756 | |||||||||
| Other liabilities |
6,504 | 7,565 | 17,071 | |||||||||
| Total liabilities |
7,656,789 | 7,480,609 | 9,065,459 | |||||||||
| Shareholders’ equity |
2,450,621 | 2,400,424 | 2,150,273 | |||||||||
| Total liabilities and shareholders’ equity |
$ | 10,107,410 | $ | 9,881,033 | $ | 11,215,732 | ||||||
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Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 51,300 | $ | 25,761 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
14,649 | 22,824 | ||||||
| Accretion and amortization of fees |
(942 | ) | 2,375 | |||||
| Provision for loan losses |
74,618 | 157,951 | ||||||
| Deferred income taxes |
452 | 15,517 | ||||||
| Non-cash interest charges on convertible debt |
5,625 | 5,249 | ||||||
| Stock-based compensation expense |
5,019 | 2,968 | ||||||
| Amortization of warrant costs |
1,968 | |||||||
| Other |
(13,800 | ) | (6,817 | ) | ||||
| Changes in assets and liabilities: |
||||||||
| Income tax receivable |
113,207 | |||||||
| Other assets |
16,373 | 1,305 | ||||||
| Accrued taxes and expenses |
(8,552 | ) | (6,657 | ) | ||||
| Net cash provided by operating activities |
144,742 | 335,651 | ||||||
| Cash flows from investing activities: |
||||||||
| Purchases of receivables |
(940,763 | ) | (217,920 | ) | ||||
| Principal collections and recoveries on receivables |
883,807 | 912,121 | ||||||
| Net change in restricted cash and other |
2,351 | 13,335 | ||||||
| Net cash (used) provided by investing activities |
(54,605 | ) | 707,536 | |||||
| Cash flows from financing activities: |
||||||||
| Net change in credit facilities |
(68,030 | ) | (611,065 | ) | ||||
| Net change in securitization notes payable |
254,488 | (160,950 | ) | |||||
| Cash settlement of share based awards |
(16,062 | ) | ||||||
| Proceeds from issuance of common stock |
2,138 | 1,136 | ||||||
| Other net changes |
(7,373 | ) | (2,823 | ) | ||||
| Net cash provided (used) by financing activities |
165,161 | (773,702 | ) | |||||
| Net increase in cash and cash equivalents |
255,298 | 269,485 | ||||||
| Effect of Canadian exchange rate changes on cash and cash equivalents |
(42 | ) | (666 | ) | ||||
| Cash and cash equivalents at beginning of period |
282,273 | 193,287 | ||||||
| Cash and cash equivalents at end of period |
$ | 537,529 | $ | 462,106 | ||||
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Other Financial Data
(Unaudited, Dollars in Thousands)
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Origination volume |
$ | 959,004 | $ | 229,073 | ||||
| Loans securitized |
1,164,267 | 981,056 | ||||||
| Average finance receivables |
$ | 8,718,310 | $ | 10,482,453 | ||||
| September 30, 2010 |
June 30, 2010 |
September 30, 2009 |
||||||||||
| Finance receivables: |
||||||||||||
| Principal |
$ | 8,675,575 | $ | 8,733,518 | $ | 10,021,033 | ||||||
| Allowance for loan losses |
(528,489 | ) | (573,310 | ) | (825,958 | ) | ||||||
| $ | 8,147,086 | $ | 8,160,208 | $ | 9,195,075 | |||||||
| Allowance as a percent of ending finance receivables |
6.1 | % | 6.6 | % | 8.2 | % | ||||||
| September 30, 2010 |
June 30, 2010 |
September 30, 2009 |
||||||||||
| Loan delinquency as a percent of ending finance receivables: |
||||||||||||
| 31 - 60 days |
6.2 | % | 6.2 | % | 7.6 | % | ||||||
| Greater than 60 days |
2.5 | 2.7 | 3.8 | |||||||||
| Total |
8.7 | % | 8.9 | % | 11.4 | % | ||||||
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Contracts receiving a payment deferral as an average quarterly percentage of average finance receivables |
6.1 | % | 7.9 | % | ||||
| Net charge-offs |
$ | 119,439 | $ | 222,633 | ||||
| Annualized net charge-offs as a percent of average finance receivables |
5.4 | % | 8.4 | % | ||||
| Net recoveries as a percent of gross repossession charge-offs |
46.4 | % | 42.7 | % | ||||
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Components of net margin:
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Finance charge income |
$ | 342,349 | $ | 389,796 | ||||
| Other income |
30,275 | 23,488 | ||||||
| Interest expense |
(89,364 | ) | (130,148 | ) | ||||
| Net margin |
$ | 283,260 | $ | 283,136 | ||||
Annualized net margin as a percent of average finance receivables:
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Finance charge income |
15.6 | % | 14.7 | % | ||||
| Other income |
1.4 | 0.9 | ||||||
| Interest expense |
(4.1 | ) | (4.9 | ) | ||||
| Net margin |
12.9 | % | 10.7 | % | ||||
| Three Months Ended September 30, |
||||||||
| 2010 | 2009 | |||||||
| Operating expenses |
$ | 68,855 | $ | 68,862 | ||||
| Annualized operating expenses as a percent of average finance receivables |
3.1 | % | 2.6 | % | ||||
| September 30, 2010 |
September 30, 2009 |
|||||||
| Leverage |
3.5x | 4.7x | ||||||
Contact:
Caitlin DeYoung
(817) 302-7394
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