Texas | 1-10667 | 75-2291093 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
Exhibit No. | Description of Exhibit | |
99.1. | Press Release dated December 31, 2012, entitled “GM Financial Reports December Quarter Operating Results” |
General Motors Financial Company, Inc. | ||||||
(Registrant) | ||||||
Date: February 14, 2013 | By: | /s/ CHRIS A. CHOATE | ||||
Chris A. Choate | ||||||
Executive Vice President, Chief Financial Officer and Treasurer |
• | Earnings of $91 million |
• | Consumer loan and lease originations of $1.5 billion |
• | Available liquidity of $2.9 billion |
• | Annualized net credit losses of 3.3% on consumer loans |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | |||||||||||||||
Finance charge income | $ | 418,067 | $ | 339,640 | $ | 1,594,174 | $ | 1,246,687 | |||||||
Leased vehicle income | 89,557 | 36,845 | 289,256 | 97,676 | |||||||||||
Other income | 20,480 | 17,770 | 77,105 | 65,625 | |||||||||||
528,104 | 394,255 | 1,960,535 | 1,409,988 | ||||||||||||
Costs and expenses | |||||||||||||||
Operating expenses | 101,652 | 88,620 | 397,582 | 338,540 | |||||||||||
Leased vehicle expenses | 63,721 | 27,642 | 211,407 | 67,088 | |||||||||||
Provision for loan losses | 115,096 | 43,437 | 303,692 | 178,372 | |||||||||||
Interest expense | 81,653 | 64,441 | 283,250 | 204,170 | |||||||||||
Acquisition expenses | 20,388 | 20,388 | |||||||||||||
382,510 | 224,140 | 1,216,319 | 788,170 | ||||||||||||
Income before income taxes | 145,594 | 170,115 | 744,216 | 621,818 | |||||||||||
Income tax provision | 54,990 | 66,451 | 281,090 | 236,291 | |||||||||||
Net income | $ | 90,604 | $ | 103,664 | $ | 463,126 | $ | 385,527 |
December 31, | |||||||
2012 | 2011 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 1,289,494 | $ | 572,297 | |||
Finance receivables, net | 10,998,274 | 9,162,492 | |||||
Restricted cash – securitization notes payable | 728,908 | 919,283 | |||||
Restricted cash – credit facilities | 14,808 | 136,556 | |||||
Property and equipment, net | 52,076 | 47,440 | |||||
Leased vehicles, net | 1,702,867 | 809,491 | |||||
Deferred income taxes | 107,075 | 108,684 | |||||
Goodwill | 1,108,278 | 1,107,982 | |||||
Other assets | 195,291 | 178,695 | |||||
Total assets | $ | 16,197,071 | $ | 13,042,920 | |||
Liabilities and Shareholder's Equity | |||||||
Liabilities: | |||||||
Credit facilities | $ | 354,203 | $ | 1,099,391 | |||
Securitization notes payable | 9,023,308 | 6,937,841 | |||||
Senior notes | 1,500,000 | 500,000 | |||||
Convertible senior notes | 500 | ||||||
Accounts payable and accrued expenses | 217,938 | 160,172 | |||||
Deferred income | 69,784 | 24,987 | |||||
Taxes payable | 93,462 | 85,477 | |||||
Related party taxes payable | 558,622 | 300,306 | |||||
Interest rate swap and cap agreements | 527 | 11,208 | |||||
Total liabilities | 11,817,844 | 9,119,882 | |||||
Shareholder's equity | 4,379,227 | 3,923,038 | |||||
Total liabilities and shareholder's equity | $ | 16,197,071 | $ | 13,042,920 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 90,604 | $ | 103,664 | $ | 463,126 | $ | 385,527 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 76,738 | 37,222 | 255,182 | 109,619 | |||||||||||
Accretion and amortization of loan and leasing fees | (15,554 | ) | (5,792 | ) | (53,189 | ) | (20,702 | ) | |||||||
Amortization of carrying value adjustment | (8,344 | ) | 33,791 | (10,419 | ) | 177,566 | |||||||||
Amortization of purchase accounting premium | (5,580 | ) | (9,973 | ) | (31,648 | ) | (67,671 | ) | |||||||
Provision for loan losses | 115,096 | 43,437 | 303,692 | 178,372 | |||||||||||
Deferred income taxes | 36,628 | 9,077 | 2,626 | 50,236 | |||||||||||
Stock-based compensation expense | 575 | 7,521 | 3,716 | 17,106 | |||||||||||
Other | (2,137 | ) | (70 | ) | (11,209 | ) | (23,218 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||||
Other assets | 6,777 | 6,906 | 2,378 | 34,649 | |||||||||||
Accounts payable and accrued expenses | (213 | ) | (20,899 | ) | 47,946 | (21,399 | ) | ||||||||
Taxes payable | 1,831 | 2,233 | 7,816 | (77,285 | ) | ||||||||||
Intercompany taxes payable | 10,566 | 54,937 | 258,316 | 258,092 | |||||||||||
Net cash provided by operating activities | 306,987 | 262,054 | 1,238,333 | 1,000,892 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of consumer finance receivables, net | (1,202,204 | ) | (1,226,943 | ) | (5,556,169 | ) | (5,020,639 | ) | |||||||
Principal collections and recoveries on consumer finance receivables | 957,360 | 902,657 | 4,006,893 | 3,719,264 | |||||||||||
Fundings of commercial finance receivables | (642,583 | ) | (1,224,082 | ) | |||||||||||
Collections of commercial finance receivables | 367,450 | 667,181 | |||||||||||||
Net purchases of leased vehicles | (196,923 | ) | (272,412 | ) | (1,021,749 | ) | (857,138 | ) | |||||||
Change in other assets | 73,578 | 13,601 | 288,320 | 18,466 | |||||||||||
Net cash used by investing activities | (643,322 | ) | (583,097 | ) | (2,839,606 | ) | (2,140,047 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Net change in credit facilities | (198,389 | ) | 544,575 | (750,777 | ) | 270,535 | |||||||||
Net change in securitization notes payable | 23,701 | 46,014 | 2,117,023 | 874,541 | |||||||||||
Issuance of senior notes | 1,000,000 | 500,000 | |||||||||||||
Other net changes | (4,939 | ) | (4,878 | ) | (48,991 | ) | (125,010 | ) | |||||||
Net cash (used) provided by financing activities | (179,627 | ) | 585,711 | 2,317,255 | 1,520,066 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (515,962 | ) | 264,668 | 715,982 | 380,911 | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (525 | ) | 414 | 1,215 | (3,168 | ) | |||||||||
Cash and cash equivalents at beginning of period | 1,805,981 | 307,215 | 572,297 | 194,554 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,289,494 | $ | 572,297 | $ | 1,289,494 | $ | 572,297 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Consumer loan originations | $ | 1,215,820 | $ | 1,239,542 | $ | 5,578,839 | $ | 5,084,800 | |||||||
GM lease originations | 265,372 | 314,343 | 1,342,818 | 986,760 | |||||||||||
GM new vehicle loans as a percent of total consumer loan originations | 30.4 | % | 30.2 | % | 30.7 | % | 28.5 | % | |||||||
GM new vehicle loans and leases as a percent of total loan and lease originations | 42.9 | % | 44.3 | % | 44.2 | % | 40.1 | % | |||||||
Loans securitized | $ | 1,055,420 | $ | 954,917 | $ | 6,776,799 | $ | 4,827,620 |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Average consumer finance receivables | $ | 10,959,387 | $ | 9,569,608 | $ | 10,421,389 | $ | 9,112,464 | |||||||
Average commercial finance receivables | 403,017 | 177,841 | |||||||||||||
Average finance receivables | 11,362,404 | 9,569,608 | 10,599,230 | 9,112,464 | |||||||||||
Average leased vehicles, net | 1,628,521 | 686,797 | 1,323,832 | 428,136 | |||||||||||
Average earning assets | $ | 12,990,925 | $ | 10,256,405 | $ | 11,923,062 | $ | 9,540,600 |
December 31, | |||||||
Consumer | 2012 | 2011 | |||||
Pre-acquisition consumer finance receivables - outstanding balance | $ | 2,161,863 | * | $ | 4,366,075 | ||
Pre-acquisition consumer finance receivables - carrying value | 1,958,204 | 4,027,361 | |||||
Post-acquisition consumer finance receivables, net of fees | 8,830,914 | * | 5,313,899 | ||||
10,789,118 | 9,341,260 | ||||||
Less: allowance for loan losses on post-acquisition consumer finance receivables | (344,740 | ) | (178,768 | ) | |||
Total consumer finance receivables, net | $ | 10,444,378 | $ | 9,162,492 | |||
Commercial | |||||||
Commercial finance receivables, net of fees | 559,999 | ||||||
Less: allowance for loan losses | (6,103 | ) | |||||
Total commercial finance receivables, net | 553,896 | ||||||
Total finance receivables, net | $ | 10,998,274 | $ | 9,162,492 | |||
Allowance for loan losses as a percent of post-acquisition consumer finance receivables | 3.9 | % | 3.4 | % | |||
Allowance for loan losses as a percent of commercial finance receivables | 1.1 | % |
December 31, | |||||
2012 | 2011 | ||||
Loan delinquency as a percent of ending consumer finance receivables: | |||||
31 - 60 days | 6.1 | % | 5.3 | % | |
Greater than 60 days | 2.1 | 1.9 | |||
Total | 8.2 | % | 7.2 | % |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Charge-offs | $ | 118,239 | $ | 37,428 | $ | 304,293 | $ | 66,080 | |||||||
Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio | 68,705 | 130,433 | 304,736 | 568,558 | |||||||||||
Credit losses on the combined portfolio | $ | 186,944 | $ | 167,861 | $ | 609,029 | $ | 634,638 | |||||||
Total credit losses on the combined portfolio | $ | 186,944 | $ | 167,861 | $ | 609,029 | $ | 634,638 | |||||||
Less: recoveries | (95,999 | ) | (87,881 | ) | (352,775 | ) | (345,605 | ) | |||||||
Net credit losses on the combined portfolio | $ | 90,945 | $ | 79,980 | $ | 256,254 | $ | 289,033 | |||||||
Net annualized credit losses as a percent of average consumer finance receivables | 3.3 | % | 3.3 | % | 2.5 | % | 3.2 | % | |||||||
Recoveries as a percent of gross repossession credit losses | 55.6 | % | 54.1 | % | 59.8 | % | 54.1 | % |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Contracts receiving a payment deferral as an average quarterly percent of average consumer finance receivables | 6.6 | % | 5.7 | % | 5.7 | % | 5.3 | % | |||||||
Operating expenses | $ | 101,652 | $ | 88,620 | $ | 397,582 | $ | 338,540 | |||||||
Annualized operating expenses as a percent of average earning assets | 3.1 | % | 3.4 | % | 3.3 | % | 3.5 | % |
Contact: | |||||
Investor Relations | |||||
(817) 302-7000 |