Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - General Motors Financial Company, Inc. | d672063dex992.htm |
| 8-K - 8-K - General Motors Financial Company, Inc. | d672063d8k.htm |
Exhibit 99.1
GM FINANCIAL REPORTS FULL YEAR AND DECEMBER QUARTER 2013 OPERATING RESULTS
| • | Full year earnings of $566 million; $121 million for the December quarter |
| • | Full year consumer loan and lease originations of $12.4 billion; $3.9 billion for the December quarter |
| • | End of period earning assets of $33.3 billion |
| • | Completed the acquisition of the Brazil auto finance operations |
FORT WORTH, TEXAS February 6, 2014 – GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced earnings of $121 million for the quarter ended December 31, 2013, compared to $91 million for the quarter ended December 31, 2012. Earnings for the year ended December 31, 2013 were $566 million, compared to $463 million for the year ended December 31, 2012. Earnings include $13 million and $42 million in pre-tax acquisition and integration expenses and $15 million in pre-tax charges associated with discontinuing the Chevrolet brand in Europe for the quarter and year ended December 31, 2013, respectively. Results for the acquired international operations are included for the time periods that they were owned by GM Financial.
Consumer loan originations were $3.3 billion for the quarter ended December 31, 2013, compared to $2.5 billion for the quarter ended September 30, 2013, and $1.2 billion for the quarter ended December 31, 2012. Consumer loan originations for the year ended December 31, 2013 were $9.6 billion, compared to $5.6 billion for the year ended December 30, 2012. The outstanding balance of consumer finance receivables totaled $23.3 billion at December 31, 2013.
Consumer loan originations in North America for the quarter and year ended December 31, 2013 were $1.1 billion and $5.1 billion, respectively.
Operating lease originations of General Motors Company (“GM”) vehicles were $650 million for the quarter ended December 31, 2013, compared to $727 million for the quarter ended September 30, 2013 and $265 million for the quarter ended December 31, 2012. Operating lease originations for the year ended December 31, 2013 were $2.8 billion, compared to $1.3 billion for the year ended December 31, 2012. Leased vehicles, net, totaled $3.4 billion at December 31, 2013.
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The outstanding balance of commercial finance receivables was $6.7 billion at December 31, 2013 compared to $5.2 billion at September 30, 2013 and $560 million at December 31, 2012. The outstanding balance of the North America commercial finance receivables at December 31, 2013 was $2.0 billion.
Consumer finance receivables 31-to-60 days delinquent were 4.1% of the portfolio at December 31, 2013, compared to 6.1% at December 31, 2012. Accounts more than 60 days delinquent were 1.7% of the portfolio at December 31, 2013, compared to 2.1% a year ago. Consumer finance receivables 31-to-60 and more than 60 days delinquent for North America were 7.5% and 2.5%, respectively, at December 31, 2013.
Annualized net credit losses were 2.1% of average consumer finance receivables for the quarter ended December 31, 2013, compared to 3.3% for the quarter ended December 31, 2012. For the year ended December 31, 2013, annualized net credit losses were 1.9%, compared to 2.5% last year. Annualized net credit losses for North America as a percent of average North America consumer finance receivables were 3.5% and 2.7%, respectively, for the quarter and year ended December 31, 2013.
The Company had total available liquidity of $3.9 billion at December 31, 2013, consisting of $1.0 billion of unrestricted cash, $1.7 billion of borrowing capacity on unpledged eligible assets, $615 million of borrowing capacity on unsecured lines of credit and $600 million on a line of credit from GM.
The Company acquired Ally Financial’s auto finance and financial services operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Greece, Spain, Chile, Colombia and Mexico on April 1, 2013 and acquired Ally Financial’s auto finance and financial services operations in France and Portugal on June 1, 2013. The Company also acquired Ally Financial’s auto finance and financial services operations in Brazil on October 1, 2013. The results of operations of the acquired entities since the applicable acquisition dates are included in the results for the quarter and year ended December 31, 2013. The information provided below in the Consolidated Statements of Income, the Consolidated Balance Sheets and the accompanying operational and financial data for the three months and year ended December 31, 2012 represent only operations in North America. Furthermore, the
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presentation convention has been changed from “thousands” to “millions” to simplify the review and analysis of the financial information. Some prior period amounts may not round under the new convention in a manner consistent with the previous presentation.
About GM Financial
General Motors Financial Company, Inc. is the captive finance company for and 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, 2013. Such risks include – but are not limited to – our ability to close the acquisition of Ally Financial’s equity interest in GMAC-SAIC, our ability to integrate the operations that we have acquired and will acquire into our business successfully, changes in general economic and business conditions, GM’s ability to sell new vehicles that we finance in the markets we serve in North America, Europe and Latin America, interest rate and currency 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 charge-offs, delinquencies and prepayments on the loans and leases we originate, the viability of GM-franchised dealers that are commercial loan customers, the prices at which used cars are sold in the wholesale auction markets, and changes in business strategy, including acquisitions and expansion of product lines and credit risk appetite. 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.
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General Motors Financial Company, Inc.
Consolidated Statements of Income
(Dollars in Millions)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue |
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| Finance charge income |
$ | 854 | $ | 418 | $ | 2,563 | $ | 1,594 | ||||||||
| Leased vehicle income |
180 | 90 | 595 | 289 | ||||||||||||
| Other income |
67 | 20 | 186 | 77 | ||||||||||||
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| 1,101 | 528 | 3,344 | 1,960 | |||||||||||||
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| Costs and expenses |
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| Operating expenses |
268 | 102 | 770 | 398 | ||||||||||||
| Leased vehicle expenses |
139 | 64 | 453 | 211 | ||||||||||||
| Provision for loan losses |
164 | 115 | 475 | 304 | ||||||||||||
| Interest expense |
307 | 81 | 721 | 283 | ||||||||||||
| Acquisition and integration expenses |
13 | 20 | 42 | 20 | ||||||||||||
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| 891 | 382 | 2,461 | 1,216 | |||||||||||||
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| Income before income taxes |
210 | 146 | 883 | 744 | ||||||||||||
| Income tax provision |
89 | 55 | 317 | 281 | ||||||||||||
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| Net income |
$ | 121 | $ | 91 | $ | 566 | $ | 463 | ||||||||
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Consolidated Balance Sheets
(Dollars in Millions)
| December 31, 2013 | December 31, 2012 | |||||||
| Assets |
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| Cash and cash equivalents |
$ | 1,074 | $ | 1,289 | ||||
| Finance receivables, net |
29,282 | 10,998 | ||||||
| Restricted cash |
1,958 | 744 | ||||||
| Property and equipment, net |
132 | 52 | ||||||
| Leased vehicles, net |
3,383 | 1,703 | ||||||
| Deferred income taxes |
359 | 107 | ||||||
| Goodwill |
1,240 | 1,108 | ||||||
| Related party receivables |
129 | 66 | ||||||
| Other assets |
433 | 130 | ||||||
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| Total assets |
$ | 37,990 | $ | 16,197 | ||||
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| Liabilities and Shareholder’s Equity |
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| Liabilities |
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| Secured debt |
$ | 22,073 | $ | 9,378 | ||||
| Unsecured debt |
6,973 | 1,500 | ||||||
| Accounts payable and accrued expenses |
946 | 217 | ||||||
| Deferred income |
168 | 70 | ||||||
| Deferred income taxes |
87 | |||||||
| Taxes payable |
287 | 93 | ||||||
| Related party taxes payable |
643 | 559 | ||||||
| Related party payable |
368 | |||||||
| Other liabilities |
160 | 1 | ||||||
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| Total liabilities |
31,705 | 11,818 | ||||||
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| Shareholder’s equity |
6,285 | 4,379 | ||||||
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| Total liabilities and shareholder’s equity |
$ | 37,990 | $ | 16,197 | ||||
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Operational and Financial Data
(Dollars in Millions)
| Three Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Consumer finance receivables originations |
$ | 1,146 | $ | 2,121 | $ | 3,267 | $ | 1,216 | ||||||||
| GM lease originations |
$ | 650 | $ | 650 | $ | 265 | ||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
53.6 | % | 89.7 | % | 73.1 | % | 42.9 | % | ||||||||
| Year Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Consumer finance receivables originations |
$ | 5,126 | $ | 4,471 | $ | 9,597 | $ | 5,579 | ||||||||
| GM lease originations |
$ | 2,830 | $ | 2,830 | $ | 1,343 | ||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
55.0 | % | 87.4 | % | 66.7 | % | 44.2 | % | ||||||||
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| Three Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Average consumer finance receivables |
$ | 11,496 | $ | 11,432 | $ | 22,928 | $ | 10,959 | ||||||||
| Average commercial finance receivables |
1,630 | 4,704 | 6,334 | 403 | ||||||||||||
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| Average finance receivables |
13,126 | 16,136 | 29,262 | 11,362 | ||||||||||||
| Average leased vehicles, net |
3,237 | 2 | 3,239 | 1,629 | ||||||||||||
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| Average earning assets |
$ | 16,363 | $ | 16,138 | $ | 32,501 | $ | 12,991 | ||||||||
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| Year Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Average consumer finance receivables |
$ | 11,335 | $ | 6,459 | $ | 17,794 | $ | 10,421 | ||||||||
| Average commercial finance receivables |
1,164 | 2,997 | 4,161 | 178 | ||||||||||||
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| Average finance receivables |
12,499 | 9,456 | 21,955 | 10,599 | ||||||||||||
| Average leased vehicles, net |
2,599 | 3 | 2,602 | 1,324 | ||||||||||||
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| Average earning assets |
$ | 15,098 | $ | 9,459 | $ | 24,557 | $ | 11,923 | ||||||||
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| December 31, 2013 | December 31, 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Consumer finance receivables |
$ | 11,493 | $ | 11,757 | $ | 23,250 | $ | 10,993 | ||||||||
| Commercial finance receivables |
1,975 | 4,725 | 6,700 | 560 | ||||||||||||
| Leased vehicles |
3,381 | 2 | 3,383 | 1,703 | ||||||||||||
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| Ending Earning Assets |
$ | 16,849 | $ | 16,484 | $ | 33,333 | $ | 13,256 | ||||||||
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| December 31, 2013 | December 31, 2012 | |||||||||||||||
| Consumer | North America | International | Total | North America | ||||||||||||
| Pre-acquisition consumer finance receivables - outstanding balance |
$ | 931 | $ | 363 | $ | 1,294 | $ | 2,162 | ||||||||
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| Pre-acquisition consumer finance receivables - carrying value |
$ | 826 | $ | 348 | $ | 1,174 | $ | 1,958 | ||||||||
| Post-acquisition consumer finance receivables, collectively evaluated for impairment, net of fees |
9,795 | 11,394 | 21,189 | 8,603 | ||||||||||||
| Post-acquisition consumer finance receivables, individually evaluated for impairment, net of fees |
767 | 767 | 228 | |||||||||||||
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| 11,388 | 11,742 | 23,130 | 10,789 | |||||||||||||
| Less: allowance for loan losses -collective |
(365 | ) | (29 | ) | (394 | ) | (313 | ) | ||||||||
| Less: allowance for loan losses -specific |
(103 | ) | (103 | ) | (32 | ) | ||||||||||
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| Total consumer finance receivables, net |
10,920 | 11,713 | 22,633 | 10,444 | ||||||||||||
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| Commercial | ||||||||||||||||
| Commercial finance receivables, collectively evaluated for impairment, net of fees |
1,975 | 4,627 | 6,602 | 560 | ||||||||||||
| Commercial finance receivables, individually evaluated for impairment, net of fees |
98 | 98 | ||||||||||||||
| Less: allowance for loan losses - collective |
(17 | ) | (27 | ) | (44 | ) | (6 | ) | ||||||||
| Less: allowance for loan losses - specific |
(7 | ) | (7 | ) | ||||||||||||
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| Total commercial finance receivables, net |
1,958 | 4,691 | 6,649 | 554 | ||||||||||||
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| Total finance receivables, net |
$ | 12,878 | $ | 16,404 | $ | 29,282 | $ | 10,998 | ||||||||
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| December 31, 2013 | December 31, 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Allowance for loan losses as a percentage of post-acquisition consumer finance receivables |
4.4 | % | 0.3 | % | 2.3 | % | 3.9 | % | ||||||||
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| Allowance for loan losses as a percentage of commercial finance receivables |
0.9 | % | 0.7 | % | 0.8 | % | 1.1 | % | ||||||||
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| December 31, 2013 | December 31, 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Loan delinquency as a percent of ending consumer finance receivables: |
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| 31 - 60 days |
7.5 | % | 0.8 | % | 4.1 | % | 6.1 | % | ||||||||
| Greater than 60 days |
2.5 | 1.0 | 1.7 | 2.1 | ||||||||||||
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| Total |
10.0 | % | 1.8 | % | 5.8 | % | 8.2 | % | ||||||||
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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 other receivable portfolio to credit losses on the combined portfolio (dollars in millions):
| Three Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America(a) | International | Total | North America | |||||||||||||
| Charge-offs |
$ | 183 | $ | 36 | $ | 219 | $ | 118 | ||||||||
| Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio |
31 | 4 | 35 | 69 | ||||||||||||
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| Total credit losses |
$ | 214 | $ | 40 | $ | 254 | $ | 187 | ||||||||
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| Year Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America(a) | International | Total | North America(a) | |||||||||||||
| Charge-offs |
$ | 584 | $ | 54 | $ | 638 | $ | 304 | ||||||||
| Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio |
154 | 13 | 167 | 305 | ||||||||||||
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| Total credit losses |
$ | 738 | $ | 67 | $ | 805 | $ | 609 | ||||||||
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| (a) | Total credit losses on the portfolio in the North American segment is comprised of repossession credit losses and mandatory credit losses |
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The following table presents credit loss data (which includes charge-offs on the post-acquisition portfolio and write-offs of contractual amounts on the pre-acquisition portfolio) with respect to our consumer finance receivables portfolio (dollars in millions):
| Three Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International(a) | Total | North America | |||||||||||||
| Repossession credit losses |
$ | 201 | $ | 40 | $ | 241 | $ | 172 | ||||||||
| Less: recoveries |
(114 | ) | (18 | ) | (132 | ) | (96 | ) | ||||||||
| Mandatory credit losses(b) |
13 | 13 | 15 | |||||||||||||
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| Net credit losses |
$ | 100 | $ | 22 | $ | 122 | $ | 91 | ||||||||
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| Net annualized credit losses as a percentage of average consumer finance receivables(c): |
3.5 | % | 0.8 | % | 2.1 | % | 3.3 | % | ||||||||
| Recoveries as a percentage of gross repossession credit losses: |
56.7 | % | 55.6 | % | ||||||||||||
| Year Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International(a) | Total | North America | |||||||||||||
| Repossession credit losses |
$ | 720 | $ | 67 | $ | 787 | $ | 590 | ||||||||
| Less: recoveries |
(427 | ) | (35 | ) | (462 | ) | (353 | ) | ||||||||
| Mandatory credit losses(b) |
18 | 18 | 19 | |||||||||||||
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| Net credit losses |
$ | 311 | $ | 32 | $ | 343 | $ | 256 | ||||||||
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| Net annualized credit losses as a percentage of average consumer finance receivables(c): |
2.7 | % | 0.5 | % | 1.9 | % | 2.5 | % | ||||||||
| Recoveries as a percentage of gross repossession credit losses: |
59.3 | % | 59.8 | % | ||||||||||||
| (a) | International operations net credit losses included in repossession credit losses represent the write-down of receivables to net realizable value, net of any recovery payments received. |
| (b) | Mandatory credit losses represent accounts 120 days delinquent in the post-acquisition portfolio that are charged off in full, with no recovery amounts realized at time of charge-off, net of any subsequent recoveries as well as the net write-down of consumer finance receivables in repossession to the net realizable value of the repossessed vehicle when the repossessed vehicle is legally available for sale. |
| (c) | Average consumer finance receivables are defined as the average daily receivable balance excluding the carrying value adjustment. |
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| Three Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.8 | % | 3.8 | % | 3.3 | % | 3.1 | % | ||||||||
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| Year Ended December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| North America | International | Total | North America | |||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.9 | % | 3.5 | % | 3.1 | % | 3.3 | % | ||||||||
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| (a) | Excluding lease and acquisition and integration expenses |
Investor Relations contacts:
Susan Sheffield
(817) 302-7355
Stephen Jones
(817) 302-7119
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