Attached files
| file | filename |
|---|---|
| 8-K - 8-K - General Motors Financial Company, Inc. | gmfdecember312012earningsr.htm |
Exhibit 99.1
GM FINANCIAL REPORTS DECEMBER QUARTER OPERATING RESULTS
• | Earnings of $91 million |
• | Consumer loan and lease originations of $1.5 billion |
• | Available liquidity of $2.9 billion |
• | Annualized net credit losses of 3.3% on consumer loans |
FORT WORTH, TEXAS February 14, 2013 - GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $91 million for the quarter ended December 31, 2012, compared to $104 million for the quarter ended December 31, 2011. Net income for the year ended December 31, 2012 was $463 million, compared to $386 million for the year ended December 31, 2011. Net income for the quarter and year ended December 31, 2012 was impacted by $20.4 million in pre-tax expenses related to the pending acquisition of Ally Financial Inc.'s international operations.
Consumer loan originations were $1.2 billion for the quarter ended December 31, 2012, compared to $1.5 billion for the quarter ended September 30, 2012, and $1.2 billion for the quarter ended December 31, 2011. Consumer loan originations for the year ended December 31, 2012 were $5.6 billion, compared to $5.1 billion for the year ended December 31, 2011. The outstanding balance of consumer finance receivables totaled $11.0 billion at December 31, 2012.
Lease originations of General Motors Company (“GM”) vehicles were $265 million for the quarter ended December 31, 2012, compared to $299 million for the quarter ended September 30, 2012 and $314 million for the quarter ended December 31, 2011. Lease originations for the year ended December 31, 2012 were $1.3 billion, compared to $1.0 billion for the year ended December 31, 2011. Leased vehicles, net, totaled $1.7 billion at December 31, 2012.
Consumer finance receivables 31-to-60 days delinquent were 6.1% of the portfolio at December 31, 2012, compared to 5.3% at December 31, 2011. Accounts more than 60 days delinquent were 2.1% of the portfolio at December 31, 2012, compared to 1.9% a year ago.
Annualized net credit losses were 3.3% of average consumer finance receivables for the quarter ended December 31, 2012, compared to 3.3% for the quarter ended December 31, 2011. For the year ended December 31, 2012, annualized consumer net credit losses were 2.5%, compared to 3.2% last year.
The Company had total available liquidity of $2.9 billion at December 31, 2012, consisting of $1.3 billion of unrestricted cash, approximately $1.3 billion 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 3,800 employees, over 815,000 customers and $16.2 billion in assets. The Company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements which are the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties that could cause actual results to differ significantly from historical results or those anticipated by the Company. The most significant of these risks are 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 December 31, 2011. Such risks include - but are not limited to - our ability to close the acquisition of some or all of Ally Financial Inc.'s (“Ally”) international operations and integrate those operations into our business successfully, changes in general economic and business conditions, GM's ability to sell new vehicles in the United States and Canada that we finance, interest rate fluctuations, our financial condition and liquidity, as well as future cash flows and earnings, competition, the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements, the availability of sources of financing, the level of net credit losses, delinquencies and prepayments on the loans and leases we originate, the prices at which used cars are sold in the wholesale auction markets, changes in business strategy, including acquisitions and expansion of product lines and credit risk appetite, the ability to integrate the business and operations of acquisitions, and significant litigation. If one or more of these risks of uncertainties materializes, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. 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.
General Motors Financial Company, Inc.
Consolidated Statements of Income
(Unaudited, in Thousands)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | |||||||||||||||
Finance charge income | $ | 418,067 | $ | 339,640 | $ | 1,594,174 | $ | 1,246,687 | |||||||
Leased vehicle income | 89,557 | 36,845 | 289,256 | 97,676 | |||||||||||
Other income | 20,480 | 17,770 | 77,105 | 65,625 | |||||||||||
528,104 | 394,255 | 1,960,535 | 1,409,988 | ||||||||||||
Costs and expenses | |||||||||||||||
Operating expenses | 101,652 | 88,620 | 397,582 | 338,540 | |||||||||||
Leased vehicle expenses | 63,721 | 27,642 | 211,407 | 67,088 | |||||||||||
Provision for loan losses | 115,096 | 43,437 | 303,692 | 178,372 | |||||||||||
Interest expense | 81,653 | 64,441 | 283,250 | 204,170 | |||||||||||
Acquisition expenses | 20,388 | 20,388 | |||||||||||||
382,510 | 224,140 | 1,216,319 | 788,170 | ||||||||||||
Income before income taxes | 145,594 | 170,115 | 744,216 | 621,818 | |||||||||||
Income tax provision | 54,990 | 66,451 | 281,090 | 236,291 | |||||||||||
Net income | $ | 90,604 | $ | 103,664 | $ | 463,126 | $ | 385,527 | |||||||
Consolidated Balance Sheets
(Unaudited, in Thousands)
December 31, | |||||||
2012 | 2011 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 1,289,494 | $ | 572,297 | |||
Finance receivables, net | 10,998,274 | 9,162,492 | |||||
Restricted cash – securitization notes payable | 728,908 | 919,283 | |||||
Restricted cash – credit facilities | 14,808 | 136,556 | |||||
Property and equipment, net | 52,076 | 47,440 | |||||
Leased vehicles, net | 1,702,867 | 809,491 | |||||
Deferred income taxes | 107,075 | 108,684 | |||||
Goodwill | 1,108,278 | 1,107,982 | |||||
Other assets | 195,291 | 178,695 | |||||
Total assets | $ | 16,197,071 | $ | 13,042,920 | |||
Liabilities and Shareholder's Equity | |||||||
Liabilities: | |||||||
Credit facilities | $ | 354,203 | $ | 1,099,391 | |||
Securitization notes payable | 9,023,308 | 6,937,841 | |||||
Senior notes | 1,500,000 | 500,000 | |||||
Convertible senior notes | 500 | ||||||
Accounts payable and accrued expenses | 217,938 | 160,172 | |||||
Deferred income | 69,784 | 24,987 | |||||
Taxes payable | 93,462 | 85,477 | |||||
Related party taxes payable | 558,622 | 300,306 | |||||
Interest rate swap and cap agreements | 527 | 11,208 | |||||
Total liabilities | 11,817,844 | 9,119,882 | |||||
Shareholder's equity | 4,379,227 | 3,923,038 | |||||
Total liabilities and shareholder's equity | $ | 16,197,071 | $ | 13,042,920 | |||
Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 90,604 | $ | 103,664 | $ | 463,126 | $ | 385,527 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 76,738 | 37,222 | 255,182 | 109,619 | |||||||||||
Accretion and amortization of loan and leasing fees | (15,554 | ) | (5,792 | ) | (53,189 | ) | (20,702 | ) | |||||||
Amortization of carrying value adjustment | (8,344 | ) | 33,791 | (10,419 | ) | 177,566 | |||||||||
Amortization of purchase accounting premium | (5,580 | ) | (9,973 | ) | (31,648 | ) | (67,671 | ) | |||||||
Provision for loan losses | 115,096 | 43,437 | 303,692 | 178,372 | |||||||||||
Deferred income taxes | 36,628 | 9,077 | 2,626 | 50,236 | |||||||||||
Stock-based compensation expense | 575 | 7,521 | 3,716 | 17,106 | |||||||||||
Other | (2,137 | ) | (70 | ) | (11,209 | ) | (23,218 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||||
Other assets | 6,777 | 6,906 | 2,378 | 34,649 | |||||||||||
Accounts payable and accrued expenses | (213 | ) | (20,899 | ) | 47,946 | (21,399 | ) | ||||||||
Taxes payable | 1,831 | 2,233 | 7,816 | (77,285 | ) | ||||||||||
Intercompany taxes payable | 10,566 | 54,937 | 258,316 | 258,092 | |||||||||||
Net cash provided by operating activities | 306,987 | 262,054 | 1,238,333 | 1,000,892 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of consumer finance receivables, net | (1,202,204 | ) | (1,226,943 | ) | (5,556,169 | ) | (5,020,639 | ) | |||||||
Principal collections and recoveries on consumer finance receivables | 957,360 | 902,657 | 4,006,893 | 3,719,264 | |||||||||||
Fundings of commercial finance receivables | (642,583 | ) | (1,224,082 | ) | |||||||||||
Collections of commercial finance receivables | 367,450 | 667,181 | |||||||||||||
Net purchases of leased vehicles | (196,923 | ) | (272,412 | ) | (1,021,749 | ) | (857,138 | ) | |||||||
Change in other assets | 73,578 | 13,601 | 288,320 | 18,466 | |||||||||||
Net cash used by investing activities | (643,322 | ) | (583,097 | ) | (2,839,606 | ) | (2,140,047 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Net change in credit facilities | (198,389 | ) | 544,575 | (750,777 | ) | 270,535 | |||||||||
Net change in securitization notes payable | 23,701 | 46,014 | 2,117,023 | 874,541 | |||||||||||
Issuance of senior notes | 1,000,000 | 500,000 | |||||||||||||
Other net changes | (4,939 | ) | (4,878 | ) | (48,991 | ) | (125,010 | ) | |||||||
Net cash (used) provided by financing activities | (179,627 | ) | 585,711 | 2,317,255 | 1,520,066 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (515,962 | ) | 264,668 | 715,982 | 380,911 | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (525 | ) | 414 | 1,215 | (3,168 | ) | |||||||||
Cash and cash equivalents at beginning of period | 1,805,981 | 307,215 | 572,297 | 194,554 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,289,494 | $ | 572,297 | $ | 1,289,494 | $ | 572,297 | |||||||
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Consumer loan originations | $ | 1,215,820 | $ | 1,239,542 | $ | 5,578,839 | $ | 5,084,800 | |||||||
GM lease originations | 265,372 | 314,343 | 1,342,818 | 986,760 | |||||||||||
GM new vehicle loans as a percent of total consumer loan originations | 30.4 | % | 30.2 | % | 30.7 | % | 28.5 | % | |||||||
GM new vehicle loans and leases as a percent of total loan and lease originations | 42.9 | % | 44.3 | % | 44.2 | % | 40.1 | % | |||||||
Loans securitized | $ | 1,055,420 | $ | 954,917 | $ | 6,776,799 | $ | 4,827,620 | |||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Average consumer finance receivables | $ | 10,959,387 | $ | 9,569,608 | $ | 10,421,389 | $ | 9,112,464 | |||||||
Average commercial finance receivables | 403,017 | 177,841 | |||||||||||||
Average finance receivables | 11,362,404 | 9,569,608 | 10,599,230 | 9,112,464 | |||||||||||
Average leased vehicles, net | 1,628,521 | 686,797 | 1,323,832 | 428,136 | |||||||||||
Average earning assets | $ | 12,990,925 | $ | 10,256,405 | $ | 11,923,062 | $ | 9,540,600 | |||||||
Finance receivables
December 31, | |||||||
Consumer | 2012 | 2011 | |||||
Pre-acquisition consumer finance receivables - outstanding balance | $ | 2,161,863 | * | $ | 4,366,075 | ||
Pre-acquisition consumer finance receivables - carrying value | 1,958,204 | 4,027,361 | |||||
Post-acquisition consumer finance receivables, net of fees | 8,830,914 | * | 5,313,899 | ||||
10,789,118 | 9,341,260 | ||||||
Less: allowance for loan losses on post-acquisition consumer finance receivables | (344,740 | ) | (178,768 | ) | |||
Total consumer finance receivables, net | $ | 10,444,378 | $ | 9,162,492 | |||
Commercial | |||||||
Commercial finance receivables, net of fees | 559,999 | ||||||
Less: allowance for loan losses | (6,103 | ) | |||||
Total commercial finance receivables, net | 553,896 | ||||||
Total finance receivables, net | $ | 10,998,274 | $ | 9,162,492 | |||
Allowance for loan losses as a percent of post-acquisition consumer finance receivables | 3.9 | % | 3.4 | % | |||
Allowance for loan losses as a percent of commercial finance receivables | 1.1 | % | |||||
*The outstanding balance of consumer finance receivables totaling $11.0 billion at December 31, 2012, is the sum of pre-acquisition consumer finance receivables-outstanding balance and post-acquisition consumer finance receivables, net of fees
December 31, | |||||
2012 | 2011 | ||||
Loan delinquency as a percent of ending consumer finance receivables: | |||||
31 - 60 days | 6.1 | % | 5.3 | % | |
Greater than 60 days | 2.1 | 1.9 | |||
Total | 8.2 | % | 7.2 | % | |
The Company analyzes portfolio performance of both the pre-acquisition and post-acquisition consumer finance receivable portfolios on a combined basis. This information allows for the ability to analyze credit loss trends of the combined portfolio and also facilitates comparisons of current and historical results.
The following is a reconciliation of charge-offs on the post-acquisition portfolio to credit losses on the combined portfolio:
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Charge-offs | $ | 118,239 | $ | 37,428 | $ | 304,293 | $ | 66,080 | |||||||
Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio | 68,705 | 130,433 | 304,736 | 568,558 | |||||||||||
Credit losses on the combined portfolio | $ | 186,944 | $ | 167,861 | $ | 609,029 | $ | 634,638 | |||||||
Total credit losses on the combined portfolio | $ | 186,944 | $ | 167,861 | $ | 609,029 | $ | 634,638 | |||||||
Less: recoveries | (95,999 | ) | (87,881 | ) | (352,775 | ) | (345,605 | ) | |||||||
Net credit losses on the combined portfolio | $ | 90,945 | $ | 79,980 | $ | 256,254 | $ | 289,033 | |||||||
Net annualized credit losses as a percent of average consumer finance receivables | 3.3 | % | 3.3 | % | 2.5 | % | 3.2 | % | |||||||
Recoveries as a percent of gross repossession credit losses | 55.6 | % | 54.1 | % | 59.8 | % | 54.1 | % | |||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Contracts receiving a payment deferral as an average quarterly percent of average consumer finance receivables | 6.6 | % | 5.7 | % | 5.7 | % | 5.3 | % | |||||||
Operating expenses | $ | 101,652 | $ | 88,620 | $ | 397,582 | $ | 338,540 | |||||||
Annualized operating expenses as a percent of average earning assets | 3.1 | % | 3.4 | % | 3.3 | % | 3.5 | % | |||||||
Contact: | |||||
Investor Relations | |||||
(817) 302-7000 | |||||