Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - General Motors Financial Company, Inc. | d809816d8k.htm |
| EX-99.2 - EX-99.2 - General Motors Financial Company, Inc. | d809816dex992.htm |
Exhibit 99.1
GM FINANCIAL REPORTS SEPTEMBER QUARTER 2014 OPERATING RESULTS
| • | Earnings of $158 million |
| • | Consumer loan and lease originations of $5.8 billion |
| • | Annualized net credit losses of 2.0% on average consumer finance receivables |
| • | End of period earning assets of $38.2 billion |
FORT WORTH, TEXAS October 23, 2014 – GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced earnings of $158 million for the quarter ended September 30, 2014, compared to $161 million for the quarter ended September 30, 2013. Earnings for the nine months ended September 30, 2014 were $478 million, compared to $445 million for the nine months ended September 30, 2013. Earnings include $7 million and $29 million in pre-tax acquisition and integration expenses for the quarter and nine-month period ended September 30, 2013, respectively.
Consumer loan originations were $4.1 billion for the quarter ended September 30, 2014, compared to $3.6 billion for the quarter ended June 30, 2014, and $2.5 billion for the quarter ended September 30, 2013. Consumer loan originations for the nine months ended September 30, 2014 were $11.1 billion, compared to $6.3 billion for the nine months ended September 30, 2013. The outstanding balance of consumer finance receivables totaled $25.3 billion at September 30, 2014.
Operating lease originations of General Motors Company (“GM”) vehicles were $1.7 billion for the quarter ended September 30, 2014, compared to $1.5 billion for the quarter ended June 30, 2014 and $727 million for the quarter ended September 30, 2013. Operating lease originations for the nine months ended September 30, 2014 were $4.1 billion, compared to $2.2 billion for the nine months ended September 30, 2013. Leased vehicles, net, totaled $5.8 billion at September 30, 2014.
The outstanding balance of commercial finance receivables was $7.2 billion at September 30, 2014 compared to $7.1 billion at June 30, 2014 and $6.7 billion at December 31, 2013.
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Consumer finance receivables 31-to-60 days delinquent were 3.9% of the portfolio at September 30, 2014, compared to 3.8% at September 30, 2013. Accounts more than 60 days delinquent were 1.7% of the portfolio at September 30, 2014, compared to 1.5% a year ago.
Annualized net credit losses were 2.0% of average consumer finance receivables for the quarter ended September 30, 2014 compared to 1.9% a year ago. For the nine months ended September 30, 2014, annualized consumer net credit losses were 1.8%, compared to 1.9% for the nine months ended September 30, 2013.
The Company had total available liquidity of $8.0 billion at September 30, 2014, consisting of $1.5 billion of unrestricted cash, $4.7 billion of borrowing capacity on unpledged eligible assets, $819 million of borrowing capacity on unsecured lines of credit and $1.0 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility 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 are included since their respective acquisition dates.
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
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acquisition of Ally Financial’s equity interest in its auto finance and financial services operations in China and operate that 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 credit losses, 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 and end of term leased vehicles are sold in the wholesale markets, and changes in business strategy, including acquisitions and expansion of product lines and credit risk appetite. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, 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 Millions)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenue |
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| Finance charge income |
$ | 883 | $ | 647 | $ | 2,595 | $ | 1,709 | ||||||||
| Leased vehicle income |
297 | 172 | 735 | 415 | ||||||||||||
| Other income |
81 | 48 | 219 | 119 | ||||||||||||
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| 1,261 | 867 | 3,549 | 2,243 | |||||||||||||
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| Costs and expenses |
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| Operating expenses |
297 | 203 | 846 | 502 | ||||||||||||
| Leased vehicle expenses |
228 | 133 | 563 | 314 | ||||||||||||
| Provision for loan losses |
160 | 117 | 408 | 311 | ||||||||||||
| Interest expense |
368 | 168 | 1,037 | 414 | ||||||||||||
| Acquisition and integration expenses |
— | 7 | — | 29 | ||||||||||||
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| 1,053 | 628 | 2,854 | 1,570 | |||||||||||||
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| Income before income taxes |
208 | 239 | 695 | 673 | ||||||||||||
| Income tax provision |
50 | 78 | 217 | 228 | ||||||||||||
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| Net income |
$ | 158 | $ | 161 | $ | 478 | $ | 445 | ||||||||
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Consolidated Balance Sheets
(Unaudited, Dollars in Millions)
| September 30, 2014 | December 31, 2013 | |||||||
| Assets |
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| Cash and cash equivalents |
$ | 1,517 | $ | 1,074 | ||||
| Finance receivables, net |
31,722 | 29,282 | ||||||
| Restricted cash |
2,060 | 1,958 | ||||||
| Property and equipment, net |
165 | 132 | ||||||
| Leased vehicles, net |
5,796 | 3,383 | ||||||
| Deferred income taxes |
357 | 359 | ||||||
| Goodwill |
1,245 | 1,240 | ||||||
| Related party receivables |
195 | 129 | ||||||
| Other assets |
516 | 433 | ||||||
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| Total assets |
$ | 43,573 | $ | 37,990 | ||||
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| Liabilities and Shareholder’s Equity |
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| Liabilities |
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| Secured debt |
$ | 22,932 | $ | 22,073 | ||||
| Unsecured debt |
10,842 | 6,973 | ||||||
| Accounts payable and accrued expenses |
990 | 946 | ||||||
| Deferred income |
317 | 168 | ||||||
| Deferred income taxes |
21 | 87 | ||||||
| Taxes payable |
239 | 287 | ||||||
| Related party taxes payable |
877 | 643 | ||||||
| Related party payables |
603 | 368 | ||||||
| Other liabilities |
194 | 160 | ||||||
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| Total liabilities |
37,015 | 31,705 | ||||||
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| Shareholder’s equity |
6,558 | 6,285 | ||||||
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| Total liabilities and shareholder’s equity |
$ | 43,573 | $ | 37,990 | ||||
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Operational and Financial Data
(Unaudited, Dollars in Millions)
| Three Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Consumer finance receivables originations |
$ | 1,957 | $ | 2,127 | $ | 4,084 | $ | 1,270 | $ | 1,233 | $ | 2,503 | ||||||||||||
| GM lease originations |
$ | 1,742 | $ | 13 | $ | 1,755 | $ | 727 | — | $ | 727 | |||||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
65.5 | % | 87.7 | % | 73.6 | % | 56.0 | % | 85.0 | % | 67.1 | % | ||||||||||||
| Nine Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Consumer finance receivables originations |
$ | 4,874 | $ | 6,255 | $ | 11,129 | $ | 3,980 | $ | 2,350 | $ | 6,330 | ||||||||||||
| GM lease originations |
$ | 4,064 | $ | 13 | $ | 4,077 | $ | 2,180 | — | $ | 2,180 | |||||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
62.7 | % | 87.6 | % | 73.0 | % | 55.5 | % | 85.4 | % | 63.7 | % | ||||||||||||
| Three Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Average consumer finance receivables |
$ | 12,383 | $ | 12,943 | $ | 25,326 | $ | 11,438 | $ | 7,448 | $ | 18,886 | ||||||||||||
| Average commercial finance receivables |
2,404 | 4,519 | 6,923 | 1,244 | 3,781 | 5,025 | ||||||||||||||||||
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| Average finance receivables |
14,787 | 17,462 | 32,249 | 12,682 | 11,229 | 23,911 | ||||||||||||||||||
| Average leased vehicles, net |
5,299 | 5 | 5,304 | 2,883 | 4 | 2,887 | ||||||||||||||||||
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| Average earning assets |
$ | 20,086 | $ | 17,467 | $ | 37,553 | $ | 15,565 | $ | 11,233 | $ | 26,798 | ||||||||||||
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| Nine Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Average consumer finance receivables |
$ | 11,924 | $ | 12,585 | $ | 24,509 | $ | 11,281 | $ | 4,801 | $ | 16,082 | ||||||||||||
| Average commercial finance receivables |
2,235 | 4,649 | 6,884 | 998 | 2,428 | 3,426 | ||||||||||||||||||
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| Average finance receivables |
14,159 | 17,234 | 31,393 | 12,279 | 7,229 | 19,508 | ||||||||||||||||||
| Average leased vehicles, net |
4,352 | 3 | 4,355 | 2,393 | 4 | 2,397 | ||||||||||||||||||
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| Average earning assets |
$ | 18,511 | $ | 17,237 | $ | 35,748 | $ | 14,672 | $ | 7,233 | $ | 21,905 | ||||||||||||
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| September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Consumer finance receivables |
$ | 12,674 | $ | 12,604 | $ | 25,278 | $ | 11,493 | $ | 11,757 | $ | 23,250 | ||||||||||||
| Commercial finance receivables |
2,513 | 4,638 | 7,151 | 1,975 | 4,725 | 6,700 | ||||||||||||||||||
| Leased vehicles |
5,785 | 11 | 5,796 | 3,381 | 2 | 3,383 | ||||||||||||||||||
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| Ending Earning Assets |
$ | 20,972 | $ | 17,253 | $ | 38,225 | $ | 16,849 | $ | 16,484 | $ | 33,333 | ||||||||||||
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| September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Consumer |
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| Pre-acquisition consumer finance receivables - outstanding balance |
$ | 460 | $ | 200 | $ | 660 | $ | 931 | $ | 363 | $ | 1,294 | ||||||||||||
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| Pre-acquisition consumer finance receivables - carrying value |
$ | 401 | $ | 197 | $ | 598 | $ | 826 | $ | 348 | $ | 1,174 | ||||||||||||
| Post-acquisition consumer finance receivables, net of fees |
12,214 | 12,404 | 24,618 | 10,562 | 11,394 | 21,956 | ||||||||||||||||||
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| 12,615 | 12,601 | 25,216 | 11,388 | 11,742 | 23,130 | |||||||||||||||||||
| Less: allowance for loan losses |
(536 | ) | (72 | ) | (608 | ) | (468 | ) | (29 | ) | (497 | ) | ||||||||||||
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| Total consumer finance receivables, net |
12,079 | 12,529 | 24,608 | 10,920 | 11,713 | 22,633 | ||||||||||||||||||
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| Commercial |
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| Commercial finance receivables, net of fees |
2,513 | 4,638 | 7,151 | 1,975 | 4,725 | 6,700 | ||||||||||||||||||
| Less: allowance for loan losses |
(17 | ) | (20 | ) | (37 | ) | (17 | ) | (34 | ) | (51 | ) | ||||||||||||
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| Total commercial finance receivables, net |
2,496 | 4,618 | 7,114 | 1,958 | 4,691 | 6,649 | ||||||||||||||||||
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| Total finance receivables, net |
$ | 14,575 | $ | 17,147 | $ | 31,722 | $ | 12,878 | $ | 16,404 | $ | 29,282 | ||||||||||||
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| September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Allowance for loan losses as a percentage of post-acquisition consumer finance receivables |
4.4 | % | 0.6 | % | 2.5 | % | 4.4 | % | 0.3 | % | 2.3 | % | ||||||||||||
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| Allowance for loan losses as a percentage of commercial finance receivables |
0.7 | % | 0.4 | % | 0.5 | % | 0.9 | % | 0.7 | % | 0.8 | % | ||||||||||||
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| September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Loan delinquency as a percent of ending consumer finance receivables: |
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| 31 - 60 days |
6.8 | % | 0.9 | % | 3.9 | % | 6.0 | % | 0.6 | % | 3.8 | % | ||||||||||||
| Greater than 60 days |
2.4 | 1.0 | 1.7 | 2.2 | 0.6 | 1.5 | ||||||||||||||||||
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| Total |
9.2 | % | 1.9 | % | 5.6 | % | 8.2 | % | 1.2 | % | 5.3 | % | ||||||||||||
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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
| Three Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America(a) |
International | Total | North America(a) |
International | Total | |||||||||||||||||||
| Charge-offs |
$ | 194 | $ | 36 | $ | 230 | $ | 153 | $ | 18 | $ | 171 | ||||||||||||
| Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio |
13 | 2 | 15 | 34 | 4 | 38 | ||||||||||||||||||
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| Total credit losses |
$ | 207 | $ | 38 | $ | 245 | $ | 187 | $ | 22 | $ | 209 | ||||||||||||
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| Nine Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America(a) |
International | Total | North America(a) |
International | Total | |||||||||||||||||||
| Charge-offs |
$ | 543 | $ | 102 | $ | 645 | $ | 401 | $ | 18 | $ | 419 | ||||||||||||
| Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio |
52 | 7 | 59 | 123 | 9 | 132 | ||||||||||||||||||
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| Total credit losses |
$ | 595 | $ | 109 | $ | 704 | $ | 524 | $ | 27 | $ | 551 | ||||||||||||
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| (a) | Total credit losses on the portfolio in the North American Segment is composed 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 September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International(a) | Total | North America |
International(a) | Total | |||||||||||||||||||
| Repossession credit losses |
$ | 207 | $ | 38 | $ | 245 | $ | 187 | $ | 22 | $ | 209 | ||||||||||||
| Less: recoveries |
(106 | ) | (12 | ) | (118 | ) | (105 | ) | (15 | ) | $ | (120 | ) | |||||||||||
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| Net credit losses |
$ | 101 | $ | 26 | $ | 127 | $ | 82 | $ | 7 | $ | 89 | ||||||||||||
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| Net annualized credit losses as a percentage of average consumer finance receivables(b): |
3.2 | % | 0.8 | % | 2.0 | % | 2.8 | % | 0.4 | % | 1.9 | % | ||||||||||||
| Recoveries as a percentage of gross repossession credit losses: |
56.6 | % | 58.7 | % | ||||||||||||||||||||
| Nine Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International(a) | Total | North America |
International(a) | Total | |||||||||||||||||||
| Repossession credit losses |
$ | 595 | $ | 109 | $ | 704 | $ | 524 | $ | 27 | $ | 551 | ||||||||||||
| Less: recoveries |
(339 | ) | (45 | ) | (384 | ) | (313 | ) | (15 | ) | (328 | ) | ||||||||||||
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| Net credit losses |
$ | 256 | $ | 64 | $ | 320 | $ | 211 | $ | 12 | $ | 223 | ||||||||||||
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| Net annualized credit losses as a percentage of average consumer finance receivables(b): |
2.9 | % | 0.7 | % | 1.8 | % | 2.5 | % | 0.4 | % | 1.9 | % | ||||||||||||
| Recoveries as a percentage of gross repossession credit losses: |
59.0 | % | 60.3 | % | ||||||||||||||||||||
| (a) | Repossession credit losses for the International Segment includes the write-down of defaulted receivables to net realizable value. |
| (b) | Average consumer finance receivables are defined as the average receivable balance excluding the carrying value adjustment. |
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| Three Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.8 | % | 3.6 | % | 3.1 | % | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||||
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| Nine Months Ended September 30, |
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| 2014 | 2013 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.8 | % | 3.6 | % | 3.2 | % | 3.1 | % | 3.1 | % | 3.1 | % | ||||||||||||
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| (a) | Excluding lease and acquisition and integration expenses. |
Investor Relations contact:
Stephen Jones
(817) 302-7119
10