Attached files
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|---|---|
| 8-K - 8-K - General Motors Financial Company, Inc. | d277652d8k.htm |
Exhibit 99.1
GM FINANCIAL REPORTS FULL YEAR AND DECEMBER QUARTER 2015
OPERATING RESULTS
| • | Full year net income of $646 million; December quarter net income of $131 million |
| • | Full year retail loan and lease originations of $37.7 billion; $9.8 billion for the December quarter |
| • | End of period earning assets of $57.7 billion |
| • | Available liquidity of $14.7 billion at year end |
FORT WORTH, TEXAS February 3, 2016 – GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $131 million for the quarter ended December 31, 2015, compared to $59 million for the quarter ended December 31, 2014. Earnings for the year ended December 31, 2015 were $646 million, compared to $537 million for the year ended December 31, 2014.
Retail loan originations were $4.4 billion for the quarter ended December 31, 2015, compared to $4.7 billion for the quarter ended September 30, 2015, and $4.0 billion for the quarter ended December 31, 2014. Retail loan originations for the year ended December 31, 2015 were $17.5 billion, compared to $15.1 billion for the year ended December 31, 2014. The outstanding balance of retail finance receivables was $29.1 billion at December 31, 2015.
Operating lease originations were $5.4 billion for the quarter ended December 31, 2015, compared to $6.2 billion for the quarter ended September 30, 2015, and $2.1 billion for the quarter ended December 31, 2014. Operating lease originations for the year ended December 31, 2015 were $20.2 billion, compared to $6.2 billion for the year ended December 31, 2014. Leased vehicles, net was $20.2 billion at December 31, 2015.
The outstanding balance of commercial finance receivables was $8.4 billion at December 31, 2015 compared to $8.1 billion at December 31, 2014.
Retail finance receivables 31-to-60 days delinquent were 4.2% of the portfolio at December 31, 2015, and 2014. Accounts more than 60 days delinquent were 1.6% of the portfolio at December 31, 2015, compared to 1.7% at December 31, 2014.
Annualized net credit losses were 2.2% of average retail finance receivables for the quarter ended December 31, 2015 and 2014. For the year ended December 31, 2015 and 2014, annualized retail net credit losses were 1.9%.
The Company had total available liquidity of $14.7 billion at December 31, 2015, consisting of $3.1 billion of cash and cash equivalents, $9.7 billion of borrowing capacity on unpledged eligible assets, $0.9 billion of borrowing capacity on committed unsecured lines of credit and $1.0 billion of borrowing capacity on a Junior Subordinated Revolving Credit Facility from GM.
On January 2, 2015, the Company completed the acquisition of Ally Financial Inc.’s 40% equity interest in SAIC-GMAC Automotive Finance Company Limited (“SAIC-GMAC”). Also on January 2, 2015, the Company sold a 5% equity interest in SAIC-GMAC to Shanghai Automotive Group Finance Company Ltd. As a result of these transactions, the Company owns a 35% equity interest in SAIC-GMAC. Income from our equity investment in SAIC-GMAC is included in our results beginning January 2, 2015.
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 our 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 from those anticipated. The most significant risks are detailed from time to time in our filings and reports with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2015. Such risks include – but are not limited to – 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, Latin America and China; 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; vehicle return rates and the residual value performance on vehicles we lease; the viability of GM-franchised dealers that are commercial loan customers; the prices at which used cars are sold in the wholesale markets; and changes in business strategy, including
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expansion of product lines and credit risk appetite, and acquisitions. If one or more of these risks or uncertainties materialize, 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. We undertake no obligation to, and do 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 December 31, |
Year Ended December 31, |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue |
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| Finance charge income |
$ | 837 | $ | 880 | $ | 3,381 | $ | 3,475 | ||||||||
| Leased vehicle income |
980 | 355 | 2,807 | 1,090 | ||||||||||||
| Other income |
61 | 70 | 266 | 289 | ||||||||||||
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| Total revenue |
1,878 | 1,305 | 6,454 | 4,854 | ||||||||||||
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| Costs and expenses |
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| Operating expenses |
348 | 316 | 1,293 | 1,162 | ||||||||||||
| Leased vehicle expenses |
777 | 284 | 2,200 | 847 | ||||||||||||
| Provision for loan losses |
184 | 196 | 624 | 604 | ||||||||||||
| Interest expense |
433 | 389 | 1,616 | 1,426 | ||||||||||||
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| Total costs and expenses |
1,742 | 1,185 | 5,733 | 4,039 | ||||||||||||
| Equity income |
31 | — | 116 | — | ||||||||||||
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| Income before income taxes |
167 | 120 | 837 | 815 | ||||||||||||
| Income tax provision |
36 | 61 | 191 | 278 | ||||||||||||
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| Net income |
$ | 131 | $ | 59 | $ | 646 | $ | 537 | ||||||||
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Consolidated Balance Sheets
(Dollars in millions)
| December 31, 2015 | December 31, 2014 | |||||||
| Assets |
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| Cash and cash equivalents |
$ | 3,061 | $ | 2,974 | ||||
| Finance receivables, net |
36,781 | 33,000 | ||||||
| Leased vehicles, net |
20,172 | 7,060 | ||||||
| Restricted cash |
1,941 | 2,071 | ||||||
| Goodwill |
1,189 | 1,244 | ||||||
| Equity in net assets of non-consolidated affiliates |
986 | — | ||||||
| Property and equipment, net of accumulated depreciation |
219 | 172 | ||||||
| Deferred income taxes |
231 | 341 | ||||||
| Related party receivables |
573 | 384 | ||||||
| Other assets |
751 | 362 | ||||||
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| Total assets |
$ | 65,904 | $ | 47,608 | ||||
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| Liabilities and Shareholder’s Equity |
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| Liabilities |
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| Secured debt |
$ | 30,689 | $ | 25,173 | ||||
| Unsecured debt |
23,657 | 12,142 | ||||||
| Accounts payable and accrued expenses |
1,218 | 1,002 | ||||||
| Deferred income |
1,454 | 392 | ||||||
| Deferred income taxes |
129 | 20 | ||||||
| Related party taxes payable |
— | 636 | ||||||
| Related party payables |
362 | 433 | ||||||
| Other liabilities |
343 | 418 | ||||||
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| Total liabilities |
57,852 | 40,216 | ||||||
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| Shareholder’s equity |
8,052 | 7,392 | ||||||
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| Total liabilities and shareholder’s equity |
$ | 65,904 | $ | 47,608 | ||||
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Operational and Financial Data
(Unaudited, Dollars in millions)
| Three Months Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Retail finance receivables originations |
$ | 2,861 | $ | 1,569 | $ | 4,430 | $ | 1,934 | $ | 2,022 | $ | 3,956 | ||||||||||||
| GM lease originations |
$ | 5,366 | $ | 22 | $ | 5,388 | $ | 2,068 | $ | 24 | $ | 2,092 | ||||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
88.0 | % | 86.8 | % | 87.8 | % | 69.3 | % | 86.6 | % | 75.2 | % | ||||||||||||
| Year Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Retail finance receivables originations |
$ | 10,931 | $ | 6,606 | $ | 17,537 | $ | 6,808 | $ | 8,277 | $ | 15,085 | ||||||||||||
| GM lease originations |
$ | 20,121 | $ | 78 | $ | 20,199 | $ | 6,132 | $ | 37 | $ | 6,169 | ||||||||||||
| GM new vehicle loans and leases as a percent of total loan and lease originations |
84.3 | % | 85.3 | % | 84.5 | % | 64.8 | % | 87.3 | % | 73.6 | % | ||||||||||||
| Three Months Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Average retail finance receivables |
$ | 17,479 | $ | 11,029 | $ | 28,508 | $ | 13,038 | $ | 12,515 | $ | 25,553 | ||||||||||||
| Average commercial finance receivables |
3,857 | 4,374 | 8,231 | 2,789 | 4,663 | 7,452 | ||||||||||||||||||
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| Average finance receivables |
21,336 | 15,403 | 36,739 | 15,827 | 17,178 | 33,005 | ||||||||||||||||||
| Average leased vehicles, net |
18,478 | 78 | 18,556 | 6,385 | 21 | 6,406 | ||||||||||||||||||
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| Average earning assets |
$ | 39,814 | $ | 15,481 | $ | 55,295 | $ | 22,212 | $ | 17,199 | $ | 39,411 | ||||||||||||
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| Year Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Average retail finance receivables |
$ | 15,688 | $ | 11,509 | $ | 27,197 | $ | 12,205 | $ | 12,568 | $ | 24,773 | ||||||||||||
| Average commercial finance receivables |
3,465 | 4,364 | 7,829 | 2,384 | 4,653 | 7,037 | ||||||||||||||||||
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| Average finance receivables |
19,153 | 15,873 | 35,026 | 14,589 | 17,221 | 31,810 | ||||||||||||||||||
| Average leased vehicles, net |
13,033 | 57 | 13,090 | 4,867 | 7 | 4,874 | ||||||||||||||||||
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| Average earning assets |
$ | 32,186 | $ | 15,930 | $ | 48,116 | $ | 19,456 | $ | 17,228 | $ | 36,684 | ||||||||||||
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| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Retail finance receivables(a) |
$ | 18,148 | $ | 10,976 | $ | 29,124 | $ | 13,409 | $ | 12,263 | $ | 25,672 | ||||||||||||
| Commercial finance receivables |
4,051 | 4,388 | 8,439 | 3,180 | 4,892 | 8,072 | ||||||||||||||||||
| Leased vehicles |
20,086 | 86 | 20,172 | 7,029 | 31 | 7,060 | ||||||||||||||||||
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| Ending earning assets |
$ | 42,285 | $ | 15,450 | $ | 57,735 | $ | 23,618 | $ | 17,186 | $ | 40,804 | ||||||||||||
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| (a) | December 31, 2014 retail finance receivables include the outstanding balance of the pre-acquisition portfolio |
| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Retail |
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| Retail finance receivables, net of fees(a,b) |
$ | 18,148 | $ | 10,976 | $ | 29,124 | $ | 13,361 | $ | 12,262 | $ | 25,623 | ||||||||||||
| Less: allowance for loan losses |
(618 | ) | (117 | ) | (735 | ) | (577 | ) | (78 | ) | (655 | ) | ||||||||||||
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| Total retail finance receivables, net |
17,530 | 10,859 | 28,389 | 12,784 | 12,184 | 24,968 | ||||||||||||||||||
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| Commercial |
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| Commercial finance receivables, net of fees |
4,051 | 4,388 | 8,439 | 3,180 | 4,892 | 8,072 | ||||||||||||||||||
| Less: allowance for loan losses |
(23 | ) | (24 | ) | (47 | ) | (21 | ) | (19 | ) | (40 | ) | ||||||||||||
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| Total commercial finance receivables, net |
4,028 | 4,364 | 8,392 | 3,159 | 4,873 | 8,032 | ||||||||||||||||||
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| Total finance receivables, net |
$ | 21,558 | $ | 15,223 | $ | 36,781 | $ | 15,943 | $ | 17,057 | $ | 33,000 | ||||||||||||
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| (a) | Amounts reported in the International Segment include $1.1 billion and $1.0 billion of direct-financing leases at December 31, 2015 and 2014. |
| (b) | Net of unamortized premiums and discounts, and deferred fees and costs of $179 million and $245 million at December 31, 2015 and 2014 |
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| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Allowance for loan losses as a percentage of retail finance receivables, net of fees |
3.4 | % | 1.1 | % | 2.5 | % | 4.4 | % | 0.6 | % | 2.6 | % | ||||||||||||
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| Allowance for loan losses as a percentage of commercial finance receivables, net of fees |
0.6 | % | 0.5 | % | 0.6 | % | 0.7 | % | 0.4 | % | 0.5 | % | ||||||||||||
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| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Loan delinquency as a percent of ending retail finance receivables: |
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| 31 - 60 days |
6.3 | % | 0.8 | % | 4.2 | % | 7.4 | % | 0.7 | % | 4.2 | % | ||||||||||||
| Greater than 60 days |
2.2 | % | 0.8 | % | 1.6 | % | 2.5 | % | 0.8 | % | 1.7 | % | ||||||||||||
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| Total |
8.5 | % | 1.6 | % | 5.8 | % | 9.9 | % | 1.5 | % | 5.9 | % | ||||||||||||
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| Three Months Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International(a) | Total | North America |
International(a) | Total | |||||||||||||||||||
| Charge-offs |
$ | 250 | $ | 36 | $ | 286 | $ | 233 | $ | 36 | $ | 269 | ||||||||||||
| Adjustments to reflect write-offs of the contractual amounts on loans acquired with deteriorated credit quality |
3 | — | 3 | 11 | (1 | ) | 10 | |||||||||||||||||
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| Total credit losses |
$ | 253 | $ | 36 | $ | 289 | $ | 244 | $ | 35 | $ | 279 | ||||||||||||
| Less: recoveries |
(123 | ) | (11 | ) | (134 | ) | (126 | ) | (11 | ) | (137 | ) | ||||||||||||
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| Net credit losses |
$ | 130 | $ | 25 | $ | 155 | $ | 118 | $ | 24 | $ | 142 | ||||||||||||
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| Net annualized credit losses as a percent of average retail finance receivables: |
3.0 | % | 0.9 | % | 2.2 | % | 3.6 | % | 0.8 | % | 2.2 | % | ||||||||||||
| Recoveries as a percentage of gross repossession credit losses: |
53.4 | % | 53.1 | % | ||||||||||||||||||||
| (a) | Credit losses for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross credit losses is not meaningful. |
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| Year Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International(a) | Total | North America |
International(a) | Total | |||||||||||||||||||
| Charge-offs |
$ | 859 | $ | 137 | $ | 996 | $ | 776 | $ | 138 | $ | 914 | ||||||||||||
| Adjustments to reflect write-offs of the contractual amounts on loans acquired with deteriorated credit quality |
18 | 1 | 19 | 63 | 6 | 69 | ||||||||||||||||||
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| Total credit losses |
$ | 877 | $ | 138 | $ | 1,015 | $ | 839 | $ | 144 | $ | 983 | ||||||||||||
| Less: recoveries |
(465 | ) | (47 | ) | (512 | ) | (465 | ) | (56 | ) | (521 | ) | ||||||||||||
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| Net credit losses |
$ | 412 | $ | 91 | $ | 503 | $ | 374 | $ | 88 | $ | 462 | ||||||||||||
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| Net annualized credit losses as a percent of average retail finance receivables: |
2.6 | % | 0.8 | % | 1.9 | % | 3.1 | % | 0.7 | % | 1.9 | % | ||||||||||||
| Recoveries as a percentage of gross repossession credit losses: |
56.4 | % | 57.3 | % | ||||||||||||||||||||
| (a) | Credit losses for the International Segment primarily include the write-down of receivables to net realizable value. As a result, a calculation of recoveries as a percentage of gross credit losses is not meaningful. |
| Three Months Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.0 | % | 3.6 | % | 2.5 | % | 2.7 | % | 3.8 | % | 3.2 | % | ||||||||||||
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| Year Ended December 31, |
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| 2015 | 2014 | |||||||||||||||||||||||
| North America |
International | Total | North America |
International | Total | |||||||||||||||||||
| Annualized operating expenses as a percent of average earning assets(a) |
2.3 | % | 3.5 | % | 2.7 | % | 2.8 | % | 3.6 | % | 3.2 | % | ||||||||||||
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| (a) | Excludes leased vehicle expenses. |
Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com
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