Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - General Motors Financial Company, Inc. | d252624d8k.htm |
Exhibit 99.1
GM FINANCIAL REPORTS SEPTEMBER QUARTER OPERATING RESULTS
| • | Earnings of $109 million |
| • | Loan and lease originations of $1.5 billion |
| • | Available liquidity of $1.5 billion |
| • | Annualized net credit losses of 3.0% |
FORT WORTH, TEXAS November 9, 2011 – GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $109 million for the quarter ended September 30, 2011, and $282 million for the nine months ended September 30, 2011.
Loan originations were $1.4 billion for the quarter ended September 30, 2011, compared to $1.3 billion for the quarter ended June 30, 2011, and $959 million for the quarter ended September 30, 2010. Loan originations for the nine months ended September 30, 2011, were $3.8 billion, compared to $2.5 billion for the nine months ended September 30, 2010. Finance receivables totaled $9.4 billion at September 30, 2011.
Lease originations of General Motors Company (“GM”) vehicles were $189 million for the quarter ended September 30, 2011, compared to $173 million for the quarter ended June 30, 2011. Lease originations of GM vehicles totaled $672 million for the nine months ended September 30, 2011. Leased vehicles, net, totaled $564 million at September 30, 2011.
Finance receivables 31-to-60 days delinquent were 4.7% of the portfolio at September 30, 2011, compared to 6.2% at September 30, 2010. Accounts more than 60 days delinquent were 1.7% of the portfolio at September 30, 2011, compared to 2.5% a year ago.
Annualized net charge-offs were 3.0% of average finance receivables for the quarter ended September 30, 2011, compared to 5.4% for the quarter ended September 30, 2010. For the nine months ended September 30, 2011, annualized net charge-offs were 3.1%, compared to 5.8% last year.
-MORE-
The Company had total available liquidity of $1.5 billion at September 30, 2011, consisting of $307 million of unrestricted cash, approximately $860 million of borrowing capacity on unpledged eligible assets and $300 million on a line of credit from GM.
About GM Financial
General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States and Canada. GM Financial has approximately 3,400 employees, 700,000 customers and $10 billion in auto receivables and leases. 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 transition report on Form 10-K/T for the six month period ended December 31, 2010. Such risks include – but are not limited to – variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, unpredictable leased vehicle residual values and return rates, 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.
2
On October 1, 2010, the Company was acquired by General Motors Holdings LLC, a wholly owned subsidiary of General Motors Company. The merger was accounted for under purchase accounting whereby the purchase price of the transaction was allocated to the assets acquired and liabilities assumed based upon fair market values. As a result of the purchase price allocation, the carrying value of GM Financial’s net finance receivables, deferred tax assets, credit facilities, securitization notes payable and uncertain tax positions increased. Additionally, goodwill of approximately $1.1 billion was established on October 1, 2010. The consolidated financial statements as of and for the three and nine months ended September 30, 2011 (labeled “Successor”) reflect the change in basis from the application of purchase accounting. The consolidated financial statements for the periods prior to the merger (labeled “Predecessor”), have been prepared on the same basis as the audited financial statements included in the annual report on Form 10-K for the year ended June 30, 2010.
General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, Dollars in Thousands)
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Revenue |
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| Finance charge income |
$ | 348,285 | $ | 907,047 | $ | 342,349 | $ | 1,020,772 | ||||||||
| Other income |
42,396 | 108,686 | 30,275 | 74,630 | ||||||||||||
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| 390,681 | 1,015,733 | 372,624 | 1,095,402 | |||||||||||||
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| Costs and expenses |
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| Operating expenses |
88,135 | 249,920 | 68,855 | 212,374 | ||||||||||||
| Leased vehicles expenses |
17,864 | 39,446 | 6,539 | 20,847 | ||||||||||||
| Provision for loan losses |
50,941 | 134,935 | 74,618 | 198,527 | ||||||||||||
| Interest expense |
56,295 | 139,729 | 89,364 | 294,678 | ||||||||||||
| Acquisition expenses |
42,651 | 42,651 | ||||||||||||||
| Restructuring charges, net |
(39 | ) | 715 | |||||||||||||
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| 213,235 | 564,030 | 281,988 | 769,792 | |||||||||||||
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| Income before income taxes |
177,446 | 451,703 | 90,636 | 325,610 | ||||||||||||
| Income tax provision |
68,639 | 169,840 | 39,336 | 125,554 | ||||||||||||
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| Net income |
$ | 108,807 | $ | 281,863 | $ | 51,300 | $ | 200,056 | ||||||||
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3
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
| Successor | Predecessor | |||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
| Assets |
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| Cash and cash equivalents |
$ | 307,215 | $ | 194,554 | $ | 537,529 | ||||||
| Finance receivables, net |
8,917,970 | 8,197,324 | 8,147,086 | |||||||||
| Restricted cash – securitization notes payable |
929,196 | 926,082 | 975,942 | |||||||||
| Restricted cash – credit facilities |
124,979 | 131,438 | 134,468 | |||||||||
| Property and equipment, net |
46,487 | 47,290 | 36,592 | |||||||||
| Leased vehicles, net |
564,103 | 46,780 | 54,730 | |||||||||
| Deferred income taxes |
119,017 | 157,884 | 77,999 | |||||||||
| Goodwill |
1,107,684 | 1,094,923 | ||||||||||
| Other assets |
190,083 | 122,463 | 143,064 | |||||||||
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| Total assets |
$ | 12,306,734 | $ | 10,918,738 | $ | 10,107,410 | ||||||
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| Liabilities and Shareholder’s Equity |
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| Liabilities: |
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| Credit facilities |
$ | 552,871 | $ | 831,802 | $ | 617,415 | ||||||
| Securitization notes payable |
6,901,572 | 6,128,217 | 6,273,224 | |||||||||
| Senior notes |
500,000 | 70,054 | 70,620 | |||||||||
| Convertible senior notes |
500 | 1,446 | 419,693 | |||||||||
| Accounts payable and accrued expenses |
194,244 | 97,169 | 138,072 | |||||||||
| Taxes payable |
83,231 | 160,712 | 70,366 | |||||||||
| Intercompany taxes payable |
245,369 | 42,214 | ||||||||||
| Interest rate swap agreements |
16,050 | 46,797 | 60,895 | |||||||||
| Other liabilities |
6,882 | 10,219 | 6,504 | |||||||||
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| Total liabilities |
8,500,719 | 7,388,630 | 7,656,789 | |||||||||
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| Shareholder’s equity |
3,806,015 | 3,530,108 | 2,450,621 | |||||||||
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| Total liabilities and shareholder’s equity |
$ | 12,306,734 | $ | 10,918,738 | $ | 10,107,410 | ||||||
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4
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Cash flows from operating activities: |
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| Net income |
$ | 108,807 | $ | 281,863 | $ | 51,300 | $ | 200,056 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization |
31,353 | 72,397 | 14,649 | 50,047 | ||||||||||||
| Amortization of purchase accounting premium |
(13,007 | ) | (57,698 | ) | ||||||||||||
| Amortization of accretable yield |
16,853 | 143,775 | ||||||||||||||
| Accretion and amortization of loan and leasing fees |
(6,996 | ) | (14,910 | ) | (942 | ) | (163 | ) | ||||||||
| Provision for loan losses |
50,941 | 134,935 | 74,618 | 198,527 | ||||||||||||
| Deferred income taxes |
3,303 | 41,159 | 452 | (68,692 | ) | |||||||||||
| Stock-based compensation expense |
3,532 | 9,585 | 5,019 | 13,228 | ||||||||||||
| Other |
(5,968 | ) | (23,148 | ) | (8,175 | ) | (5,157 | ) | ||||||||
| Changes in assets and liabilities: |
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| Other assets |
1,699 | 27,743 | 16,373 | 49,813 | ||||||||||||
| Accounts payable and accrued expenses |
8,721 | (500 | ) | (9,957 | ) | 17,490 | ||||||||||
| Taxes payable |
7,795 | (79,518 | ) | 1,405 | 13,311 | |||||||||||
| Intercompany taxes payable |
59,214 | 203,155 | ||||||||||||||
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| Net cash provided by operating activities |
266,247 | 738,838 | 144,742 | 468,460 | ||||||||||||
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| Cash flows from investing activities: |
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| Purchases of receivables |
(1,340,610 | ) | (3,793,696 | ) | (940,763 | ) | (2,445,707 | ) | ||||||||
| Principal collections and recoveries on receivables |
936,431 | 2,816,607 | 883,807 | 2,709,871 | ||||||||||||
| Purchases of leased vehicles |
(166,978 | ) | (584,726 | ) | ||||||||||||
| Proceeds from termination of leased vehicles |
10,956 | 32,017 | ||||||||||||||
| Net change in restricted cash and other |
(3,801 | ) | (27,152 | ) | 2,351 | (55,221 | ) | |||||||||
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| Net cash (used) provided by investing activities |
(564,002 | ) | (1,556,950 | ) | (54,605 | ) | 208,943 | |||||||||
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| Cash flows from financing activities: |
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| Net change in credit facilities |
133,442 | (274,040 | ) | (68,030 | ) | (179,011 | ) | |||||||||
| Net change in securitization notes payable |
33,380 | 828,527 | 254,488 | (228,946 | ) | |||||||||||
| Issuance of senior notes |
500,000 | |||||||||||||||
| Other net changes |
(85,397 | ) | (120,132 | ) | (21,297 | ) | (51,879 | ) | ||||||||
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| Net cash provided (used) by financing activities |
81,425 | 934,355 | 165,161 | (459,836 | ) | |||||||||||
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| Net (decrease) increase in cash and cash equivalents |
(216,330 | ) | 116,243 | 255,298 | 217,567 | |||||||||||
| Effect of Canadian exchange rate changes on cash and cash equivalents |
(2,183 | ) | (3,582 | ) | (42 | ) | 318 | |||||||||
| Cash and cash equivalents at beginning of period |
525,728 | 194,554 | 282,273 | 319,644 | ||||||||||||
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| Cash and cash equivalents at end of period |
$ | 307,215 | $ | 307,215 | $ | 537,529 | $ | 537,529 | ||||||||
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5
Other Financial Data
(Unaudited, Dollars in Thousands)
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Loan origination volume |
$ | 1,358,115 | $ | 3,845,258 | $ | 959,004 | $ | 2,488,956 | ||||||||
| GM lease origination volume |
188,706 | 672,417 | ||||||||||||||
| GM new vehicle loans as % of total loan originations |
30.9 | % | 28.0 | % | 15.7 | % | 13.2 | % | ||||||||
| GM new vehicle loans and leases as % of total loan and lease originations |
39.3 | % | 38.7 | % | 15.7 | % | 13.2 | % | ||||||||
| Loans securitized |
$ | 954,915 | $ | 3,872,703 | $ | 1,164,267 | $ | 2,732,029 | ||||||||
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Average finance receivables |
$ | 9,276,098 | $ | 8,958,549 | $ | 8,718,310 | $ | 8,850,833 | ||||||||
| Average leased vehicles, net |
501,767 | 305,442 | 74,704 | 93,028 | ||||||||||||
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| Average earning assets |
$ | 9,777,865 | $ | 9,263,991 | $ | 8,793,014 | $ | 8,943,861 | ||||||||
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6
| Successor | Predecessor | |||||||||||
| September 30, 2011 |
December 31, 2010 |
September 30, 2010 |
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| Finance receivables: |
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| Pre-acquisition finance receivables |
$ | 5,076,311 | $ | 7,724,188 | $ | 8,675,575 | ||||||
| Post-acquisition finance receivables |
4,361,893 | 923,713 | ||||||||||
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| 9,438,204 | 8,647,901 | 8,675,575 | ||||||||||
| Add accretable yield: |
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| Pre-acquisition finance receivables |
83,006 | 423,556 | ||||||||||
| Less non-accretable discount on: |
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| Pre-acquisition finance receivables |
(451,918 | ) | (847,781 | ) | ||||||||
| Less allowance for loan losses on: |
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| Post-acquisition finance receivables |
(151,322 | ) | (26,352 | ) | ||||||||
| Pre-acquisition finance receivables |
(528,489 | ) | ||||||||||
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| $ | 8,917,970 | $ | 8,197,324 | $ | 8,147,086 | |||||||
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| Non-accretable discount as a percentage of pre-acquisition finance receivables |
8.9 | % | 11.0 | % | ||||||||
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| Allowance for loan losses as a percentage of post-acquisition finance receivables |
3.5 | % | 2.9 | % | ||||||||
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| Allowance for loan losses as a percentage of pre-acquisition finance receivables |
6.1 | % | ||||||||||
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| September 30, | December 31, | September 30, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
| Loan delinquency as a percent of ending finance receivables: |
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| 31–60 days |
4.7 | % | 6.2 | % | 6.2 | % | ||||||
| Greater than 60 days |
1.7 | 2.4 | 2.5 | |||||||||
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| Total |
6.4 | % | 8.6 | % | 8.7 | % | ||||||
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7
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Contracts receiving a payment deferral as an average quarterly percentage of average finance receivables |
5.4 | % | 5.2 | % | 6.1 | % | 6.3 | % | ||||||||
| Net charge-offs |
$ | 69,957 | $ | 209,053 | $ | 119,439 | $ | 387,097 | ||||||||
| Annualized net charge-offs as a percent of average finance receivables |
3.0 | % | 3.1 | % | 5.4 | % | 5.8 | % | ||||||||
| Net recoveries as a percent of gross repossession charge-offs |
55.3 | % | 54.2 | % | 46.4 | % | 46.4 | % | ||||||||
Components of net margin:
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Finance charge income |
$ | 348,285 | $ | 907,047 | $ | 342,349 | $ | 1,020,772 | ||||||||
| Other income |
42,396 | 108,686 | 30,275 | 74,630 | ||||||||||||
| Interest expense |
(56,295 | ) | (139,729 | ) | (89,364 | ) | (294,678 | ) | ||||||||
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| Net margin |
$ | 334,386 | $ | 876,004 | $ | 283,260 | $ | 800,724 | ||||||||
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Annualized net margin as a percent of average earning assets:
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Finance charge income and other income |
15.9 | % | 14.6 | % | 16.8 | % | 16.4 | % | ||||||||
| Interest expense |
(2.3 | ) | (2.0 | ) | (4.0 | ) | (4.4 | ) | ||||||||
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| Net margin |
13.6 | % | 12.6 | % | 12.8 | % | 12.0 | % | ||||||||
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8
| Successor | Predecessor | |||||||||||||||
| Three Months Ended September 30, 2011 |
Nine Months Ended September 30, 2011 |
Three Months Ended September 30, 2010 |
Nine Months Ended September 30, 2010 |
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| Operating expenses |
$ | 88,135 | $ | 249,920 | $ | 68,855 | $ | 212,374 | ||||||||
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| Annualized operating expenses as a percent of average earning assets |
3.6 | % | 3.6 | % | 3.1 | % | 3.2 | % | ||||||||
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Contact:
Caitlin DeYoung
(817) 302-7394
9