EX-99.1 2 dex991.htm NEWS RELEASE DATED MAY 5, 2011 AND FINANCIAL STATEMENTS News Release Dated May 5, 2011 and Financial Statements

LOGO

For Release: May 5, 2011, 7:30 a.m. EDT

GM Reports Net Income of $3.2 Billion

Net income of $1.77 per share including a net gain from special items of $0.82 per share

EBIT of $3.5 billion and EBIT-adjusted of $2.0 billion

GM Europe achieves breakeven results on an EBIT-adjusted basis

DETROIT – General Motors Company (NYSE: GM) today announced first quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking the company’s fifth consecutive profitable quarter. Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.

“We are on plan,” said Dan Akerson, chairman and CEO. “GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth.”

Net income attributable to common stockholders includes gains of $1.6 billion and $0.3 billion respectively related to the sales of the company’s ownership interest in Delphi Automotive LLP and Ally Financial Inc. preferred stock. It also includes a $0.4 billion goodwill impairment charge at GM Europe (GME) resulting from a change in accounting standards and charges totaling $0.1 billion at GM International Operations (GMIO) related to revised tax regulations affecting the company’s India joint venture. Combined, these special items increased net income attributable to common stockholders by $1.5 billion or $0.82 per fully-diluted share.

Earnings before interest and tax (EBIT) were $3.5 billion. EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010.

GM Results Overview (in billions except for per share amounts)

 

     Q1 2010      Q1 2011  

Revenue

    $ 31.5       $ 36.2   

Net income attributable to common stockholders

    $ 0.9       $ 3.2   

Earnings per share (EPS) diluted

    $ 0.55       $ 1.77   

EBIT

    $ 1.8       $ 3.5   

Less special items

    $ 0.1       $ 1.5   

EBIT – adjusted

    $ 1.7       $ 2.0   

Impact of special items on EPS diluted

    $ 0.08       $ 0.82   

Automotive net cash flow from operating activities

    $ 1.9       $ (0.6 )* 

Automotive free cash flow

    $ 1.0       $ (1.9 )* 

 

* Includes $2.5 billion negative impact related to wholesale advance financing agreement termination

GM North America (GMNA) reported EBIT of $2.9 billion compared with $1.2 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMNA increased its earnings by $0.1 billion to $1.3 billion compared with the first quarter of 2010. The company expects GMNA’s quarterly EBIT-adjusted results to improve on average for the remainder of the year compared with the first quarter as better pricing and improved fixed cost should more than offset commodity cost increases and unfavorable mix.

GME reported EBIT of $(0.4) billion. GME’s results improved by $0.6 billion on an EBIT-adjusted basis compared with the first quarter of 2010 and it achieved a significant milestone by delivering breakeven results on that basis. Based on current plans, GME is targeting to achieve breakeven results on an EBIT-adjusted basis before restructuring for the entire year.

GMIO reported EBIT of $0.5 billion compared with $0.9 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMIO earned $0.6 billion in the first quarter, a decline of $0.3 billion compared with the first quarter of 2010.

GM South America (GMSA) reported EBIT of $0.1 billion, down $0.2 billion from the first quarter of 2010. There were no adjustments in either period.

GM expects that full-year 2011 EBIT-adjusted results will show solid improvement over 2010. GM continues to expect no material impact on full-year results from the Japan crisis.

For the quarter, automotive cash flow from operating activities was $(0.6) billion and automotive free cash flow was $(1.9) billion. Both figures include the $2.5 billion cash impact of GM’s decision, announced in October 2010, to end a wholesale advance agreement with Ally Financial.

GM ended the quarter with very strong total automotive liquidity of $36.5 billion. Automotive cash and marketable securities, including Canadian Health Care Trust restricted cash, was $30.6 billion compared with $27.6 billion at the end of the fourth quarter of 2010.

“GM has great potential to deliver profitable growth around the world as the recovery continues,” said Dan Ammann, senior vice president and CFO. “While we’re encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet.”

About General Motors – General Motors (NYSE:GM, TSX: GMM), one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM’s largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at www.gm.com.

 

Contacts:      
Reneé Rashid-Merem    Randy Arickx   
Office 313-665-3128    Office 313-667-0006   
Cell 313-701-8560    Cell 313-268-7070   
renee.rashid-merem@gm.com    randy.c.arickx@gm.com   

 

2

Forward-Looking Statements

In this press release and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planned significant investment in new technology; the ability of our suppliers to timely deliver parts, components and systems; our ability to realize successful vehicle applications of new technology; and our ability to continue to attract new customers, particularly for our new products. GM’s most recent annual report on Form 10-K and quarterly report on Form 10-Q provides information about these and other factors, which we may revise or supplement in future reports to the SEC.

 

3

Exhibit 1

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

The accompanying tables and charts for securities analysts include earnings before interest and taxes (EBIT), EBIT adjusted and Automotive free cash flow which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) and have not been audited or reviewed by GM’s independent auditors. EBIT, EBIT adjusted and Automotive free cash flow are considered non-GAAP financial measures.

Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM’s operating results because they exclude amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons and benchmark performance among geographic regions. Accordingly, GM believes these non-GAAP financial measures are useful in allowing for greater transparency of GM’s core operations and they are therefore used by management in its financial and operational decision-making.

While management believes that these non-GAAP financial measures provide useful information, they are not operating measures under U.S. GAAP and there are limitations associated with their use. GM’s calculation of these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences between companies in their method of calculation. As a result, the use of these non-GAAP financial measures has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net income or Net income attributable to common stockholders. Due to these limitations, these non-GAAP financial measures are used as a supplement to U.S. GAAP measures.

The following table summarizes the reconciliation of EBIT to its most comparable U.S. GAAP measure (dollars in millions):

 

     Three Months
Ended
March 31, 2011		     Three Months
Ended
March 31, 2010		  

Operating segments

     

GMNA(a)

    $ 2,898      $ 1,218   

GME(a)(b)

      (390 )      (477 ) 

GMIO(a)(b)

      480        908   

GMSA(a)(b)

      90        265   

GM Financial(c)

      130        —     
                

Total operating segments

      3,208        1,914   

Corporate and eliminations

      317        (90 ) 
                

EBIT(c)

      3,525        1,824   

Interest income

      127        90   

Automotive interest expense

      149        337   

Income tax expense

      137        509   
                

Net income attributable to stockholders

      3,366        1,068   

Less: Cumulative dividends on preferred stock

      215        203   
                

Net income attributable to common stockholders

    $ 3,151      $ 865   
                

 

(a) Interest and income taxes are recorded centrally in Corporate; therefore, there are no reconciling items for GM’s automotive operating segments between EBIT and Net income attributable to stockholders.
(b) In the year ended December 31, 2010 GM changed its managerial and financial reporting structure so that certain entities geographically located within Russia and Uzbekistan were transferred from GM’s GME segment to GM’s GMIO segment and certain entities geographically located in Brazil, Argentina, Colombia, Ecuador, Venezuela, Bolivia, Chile, Paraguay, Peru and Uruguay were transferred from GM’s GMIO segment to GM’s newly created GMSA segment. GM has retrospectively revised the segment presentation for all periods presented.
(c) GM Financial amounts represent income before income taxes.

 

1

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

 

The following table summarizes the reconciliation of EBIT adjusted to EBIT (dollars in millions):

 

     Three  Months
Ended
March 31, 2011(a)		      Three  Months
Ended
March 31, 2010		  

EBIT adjusted

    $ 2,042       $ 1,701   

Special items

      1,483         123   
                 

EBIT

    $ 3,525       $ 1,824   
                 

 

(a) GM Financial amounts included in EBIT and EBIT adjusted represent income before income taxes.

Special Items

In the three months ended March 31, 2011 special items included:

 

  •  

Gain of $1.6 billion in GMNA related to the sale of GM’s Class A Membership Interests in Delphi Automotive LLP;

 

  •  

Gain of $339 million in Corporate related to the sale of 100% of the Ally Financial Preferred Stock;

 

  •  

Impairment charge of $395 million in GME related to goodwill; and

 

  •  

Charge of $106 million in GMIO related to GM’s India joint venture.

In the three months ended March 31, 2010 special items included a gain of $123 million in GME related to the sale of Saab Automobile AB to Spyker Cars NV.

The following table summarizes the reconciliation of Automotive free cash flow to Automotive Net cash provided by (used in) operating activities (dollars in millions):

 

     Three Months
Ended
March 31, 2011		     Three Months
Ended
March 31, 2010		  

Automotive

     

Free cash flow

    $ (1,918 )    $ 1,010   

Capital expenditures

      1,322        840   
                

Net cash provided by (used in) operating activities

    $ (596 )    $ 1,850   
                

 

 

2

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

 

The following tables summarize selected data by segment (dollars in millions):

 

    GMNA     GME     GMIO     GMSA     Corporate     Eliminations     Total
Automotive		     GM
Financial		     Eliminations     Total  

Three Months Ended March 31, 2011

                    

Total net sales and revenue

   $ 22,110      $ 6,870      $ 5,427      $ 3,896      $ 16      $ (2,420 )    $ 35,899      $ 295      $ —        $ 36,194   

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets

   $ 977      $ 340      $ 116      $ 116      $ 13      $ —        $ 1,562      $ 14      $ —        $ 1,576   

Equity income, net of tax and gain on disposal of investments(a)

   $ 1,729      $ —        $ 415      $ —        $ —        $ —        $ 2,144      $ —        $ —        $ 2,144   

 

(a) Includes a gain of $1.6 billion recorded on the sale of GM’s Class A Membership Interests in Delphi Automotive LLP.

 

    GMNA     GME     GMIO     GMSA     Corporate     Eliminations     Total
Automotive		     Total  

Three Months Ended March 31, 2010

                

Total net sales and revenue

   $ 19,286      $ 5,461      $ 4,985      $ 3,324      $ 45      $ (1,625 )    $ 31,476      $ 31,476   

Depreciation, amortization and impairment of long-lived assets and finite-lived intangible assets

   $ 1,174      $ 384      $ 65      $ 129      $ 51      $ —        $ 1,803      $ 1,803   

Equity income, net of tax and gain on disposal of investments

   $ 34      $ 7      $ 362      $ —        $ —        $ —        $ 403      $ 403   

The following tables summarize worldwide employment and payroll:

 

     March 31, 2011      December 31, 2010  

Worldwide Employment (thousands)

      

GMNA

      97         96   

GME

      40         40   

GMIO

      33         32   

GMSA

      32         31   

GM Financial

      3         3   
                 

Total Worldwide

      205         202   
                 

U.S. – Salaried

      28         28   

U.S. – Hourly

      49         49   
     Three Months
Ended
March 31, 2011		      Three Months
Ended
March 31, 2010		  

Worldwide Payroll (billions)

    $ 3.3       $ 3.0   

 

3

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

 

     Three Months
Ended
March 31, 2011		      Three Months
Ended
March 31, 2010		  

Production Volume (units in thousands)(a)

      

GMNA – Cars

      284         244   

GMNA – Trucks

      502         424   
                 

Total GMNA

      786         668   

GME

      344         305   

GMIO - Consolidated Entities

      257         248   

GMIO - Joint Ventures(b)

      709         654   
                 

Total GMIO

      966         902   

GMSA

      231         210   
                 

Total Worldwide

      2,327         2,085   
                 

 

(a) Production volume includes vehicles produced by certain joint ventures.
(b) The joint venture agreements with SGMW (44%) in the three months ended March 31, 2011 and (34%) in the three months ended March 31, 2010 and FAW-GM (50%) allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture production in China.

 

4

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

 

     Three Months
Ended
March 31, 2011		      Three  Months
Ended
March 31, 2010(a)(b)		  

Vehicle Sales (units in thousands)(c)(d)(e)

      

United States

      

Chevrolet – Cars

      181         156   

Chevrolet – Trucks

      235         182   

Cadillac

      41         29   

Buick

      45         32   

GMC

      91         69   

Other

      0         8   
                 

Total United States

      593         477   

Canada, Mexico and Other

      92         86   
                 

Total GMNA

      684         564   
                 

GME

      

Opel/Vauxhall

      320         295   

Chevrolet

      112         105   

Other

      1         4   
                 

Total GME

      433         404   
                 

GMIO

      

Chevrolet

      256         220   

Wuling

      337         334   

Buick

      166         122   

GM Daewoo

      16         28   

Holden

      32         36   

FAW-GM

      17         28   

GMC

      7         8   

Cadillac

      8         4   

Other

      17         11   
                 

Total GMIO(f)(g)

      855         790   
                 

GMSA

      

Chevrolet

      247         237   

Other

      3         4   
                 

Total GMSA

      250         241   
                 

Total Worldwide

      2,221         1,999   
                 

 

(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes GM Saab Automobile AB (Saab) vehicle sales data through February 2010.
(c) Vehicle sales data may include rounding differences.
(d) Certain fleet sales that are accounted for as operating leases are included in vehicle sales at the time of delivery to the daily rental car companies.
(e) GMNA vehicle sales primarily represent sales to the ultimate customer. GME, GMIO and GMSA vehicle sales primarily represent estimated sales to the ultimate customer. In countries where end customer data is not readily available other data sources, such as wholesale volumes, are used to estimate vehicle sales.
(f) Includes the following joint venture vehicle sales:

 

     Three Months
Ended
March 31, 2011		      Three Months
Ended
March 31, 2010		  

Joint venture sales in China

      

SGM

      310         235   

SGMW and FAW-GM

      376         388   

Joint venture sales in India

      

HKJV

      29         22   

 

(g) The joint venture agreements with SGMW (44%) in the three months ended March 31, 2011 and (34%) in the three months ended March 31, 2010 and FAW-GM (50%) allow for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as part of GM’s global market share.

 

5

General Motors Company and Subsidiaries

Supplemental Material

(Unaudited)

 

     Three Months
Ended
March 31, 2011		     Three  Months
Ended
March 31, 2010(a)(b)		  

Market Share(c)(d)(e)

     

United States – Cars

      15.4 %      14.8 % 

United States – Trucks

      22.4 %      22.0 % 

Total United States

      19.0 %      18.4 % 

Total GMNA

      18.3 %      17.8 % 

Total GME

      8.6 %      8.5 % 

Total GMIO(f)(g)

      9.2 %      8.8 % 

Total GMSA

      18.8 %      20.7 % 

Total Worldwide

      11.5 %      11.1 % 

U.S. Retail/Fleet Mix

     

% Fleet Sales – Cars

      28.6 %      40.6 % 

% Fleet Sales – Trucks

      20.5 %      24.5 % 

Total Vehicles

      23.6 %      30.9 % 

GMNA Capacity Utilization(h)

      99.1 %      85.1 % 

 

(a) Includes HUMMER, Saturn and Pontiac vehicle sales data.
(b) Includes GM Saab vehicle sales data through February 2010.
(c) Market share information is based on vehicle sales volume.
(d) Certain fleet sales that are accounted for as operating leases are included in vehicle sales at the time of delivery to the daily rental car companies.
(e) GMNA vehicle sales primarily represent sales to the ultimate customer. GME, GMIO and GMSA vehicle sales primarily represent estimated sales to the ultimate customer. In countries where end customer data is not readily available other data sources, such as wholesale volumes, are used to estimate vehicle sales.
(f) Includes the following joint venture vehicle sales (units in thousands):

 

     Three Months
Ended
March 31, 2011		      Three Months
Ended
March 31, 2010		  

Joint venture sales in China

      

SGM

      310         235   

SGMW and FAW-GM

      376         388   

Joint venture sales in India

      

HKJV

      29         22   

 

(g) The joint venture agreements with SGMW (44%) in the three months ended March 31, 2011 and (34%) in the three months ended March 31, 2010 and FAW-GM (50%) allow for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as part of GM’s global market share.
(h) Two shift rated, annualized.

 

6

General Motors Company and Subsidiaries

Condensed Consolidated Income Statements

(In millions, except per share amounts)

(Unaudited)

 

     Three Months
Ended
March  31, 2011		     Three Months
Ended
March  31, 2010		  

Net sales and revenue

     

Automotive sales

    $ 35,879      $ 31,422   

GM Financial revenue

      295        —     

Other automotive revenue

      20        54   
                

Total net sales and revenue

      36,194        31,476   
                

Costs and expenses

     

Automotive cost of sales

      31,685        27,553   

GM Financial operating and other expenses

      165        —     

Automotive selling, general and administrative expense

      2,994        2,684   

Other automotive expenses, net

      6        46   
                

Total costs and expenses

      34,850        30,283   

Goodwill impairment charges

      395        —     
                

Operating income

      949        1,193   

Automotive interest expense

      149        337   

Interest income and other non-operating income, net

      604        447   

Loss on extinguishment of debt

      —          (1 ) 
                

Income before income taxes and equity income

      1,404        1,302   

Income tax expense

      137        509   

Equity income, net of tax and gain on disposal of investments

      2,144        403   
                

Net income

      3,411        1,196   

Net income attributable to noncontrolling interests

      (45 )      (128 ) 
                

Net income attributable to stockholders

      3,366        1,068   

Less: Cumulative dividends on preferred stock

      215        203   
                

Net income attributable to common stockholders

    $ 3,151      $ 865   
                

Earnings per share

     

Basic and Diluted

     

Net income attributable to common stockholders – basic

    $ 3,151      $ 865   

Addition of preferred dividends to holders of Series B Preferred Stock

      59        —     
                

Net income attributable to common stockholders – diluted

    $ 3,210      $ 865   
                

Basic and Diluted

     

Weighted-average common shares outstanding – basic

      1,504        1,500   

Dilutive effect of warrants

      162        67   

Dilutive effect of conversion of Series B Preferred Stock

      148        —     

Dilutive effect of restricted stock units

      3        —     
                

Weighted-average common shares outstanding – diluted

      1,817        1,567   
                

Basic earnings per share

    $ 2.09      $ 0.58   

Diluted earnings per share

    $ 1.77      $ 0.55   

 

7

General Motors Company and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions, except share amounts)

(Unaudited)

 

     March 31, 2011      December 31, 2010  
ASSETS      

Automotive Current Assets

      

Cash and cash equivalents

    $ 20,975       $ 21,061   

Marketable securities

      8,618         5,555   
                 

Total cash, cash equivalents and marketable securities

      29,593         26,616   

Accounts and notes receivable (net of allowance of $336 and $252)

      12,990         8,699   

Inventories

      13,991         12,125   

Equipment on operating leases, net

      3,099         2,568   

Other current assets and deferred income taxes

      3,276         3,045   
                 

Total current assets

      62,949         53,053   

Automotive Non-current Assets

      

Equity in net assets of nonconsolidated affiliates

      6,937         8,529   

Property, net

      19,944         19,235   

Goodwill

      28,752         30,513   

Intangible assets, net

      11,488         11,882   

Other assets and deferred income taxes

      4,249         4,754   
                 

Total non-current assets

      71,370         74,913   
                 

Total Automotive Assets

      134,319         127,966   

GM Financial Assets

      

Finance receivables, net (including finance receivables transferred to special purpose entities of $8,603 and $7,156)

      8,276         8,197   

Restricted cash

      1,201         1,090   

Goodwill

      1,265         1,265   

Other assets (including leased assets transferred to special purpose entities of $188 at March 31, 2011)

      785         380   
                 

Total GM Financial Assets

      11,527         10,932   
                 

Total Assets

    $ 145,846       $ 138,898   
                 
LIABILITIES AND EQUITY      

Automotive Current Liabilities

      

Accounts payable (principally trade)

    $ 24,739       $ 21,497   

Short-term debt and current portion of long-term debt (including debt at GM Korea of $117 and $70)

      1,743         1,616   

Accrued liabilities (including derivative liabilities at GM Korea of $49 and $111)

      25,200         24,044   
                 

Total current liabilities

      51,682         47,157   

Automotive Non-current Liabilities

      

Long-term debt (including debt at GM Korea of $8 and $835)

      3,268         3,014   

Postretirement benefits other than pensions

      9,396         9,294   

Pensions

      21,660         21,894   

Other liabilities and deferred income taxes

      12,851         13,021   
                 

Total non-current liabilities

      47,175         47,223   
                 

Total Automotive Liabilities

      98,857         94,380   

GM Financial Liabilities

      

Securitization notes payable

      6,061         6,128   

Credit facilities

      1,412         832   

Other liabilities

      430         399   
                 

Total GM Financial Liabilities

      7,903         7,359   
                 

Total Liabilities

      106,760         101,739   

Commitments and contingencies

      

Equity

      

Preferred stock, $0.01 par value, 2,000,000,000 shares authorized:

      

Series A (276,101,695 shares issued and outstanding (each with a $25.00 liquidation preference) at March 31, 2011 and December 31, 2010)

      5,536         5,536   

Series B (100,000,000 shares issued and outstanding (each with a $50.00 liquidation preference) at March 31, 2011 and December 31, 2010)

      4,855         4,855   

Common stock, $0.01 par value (5,000,000,000 shares authorized, 1,560,755,989 and 1,500,149,928 shares issued and outstanding at March 31, 2011 and 1,500,136,998 shares issued and outstanding at December 31, 2010)

      15         15   

Capital surplus (principally additional paid-in capital)

      24,347         24,257   

Retained earnings

      1,951         266   

Accumulated other comprehensive income

      1,494         1,251   
                 

Total stockholders’ equity

      38,198         36,180   

Noncontrolling interests

      888         979   
                 

Total Equity

      39,086         37,159   
                 

Total Liabilities and Equity

    $ 145,846       $ 138,898   
                 

 

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