8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2018

General Motors Financial Company, Inc.

(Exact name of registrant as specified in its charter)

Texas	1-10667	75-2291093
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

801 Cherry Street, Suite 3500, Fort Worth, Texas 76102

(Address of principal executive offices, including Zip Code)

(817) 302-7000

(Registrant’s telephone number, including area code)

(Not Applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 25, 2018, General Motors Financial Company, Inc. (the “Company”) issued a press release announcing the results of operations for the quarter ended June 30, 2018. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

In lieu of a conference call, management recorded remarks addressing the results. This recording, along with the presentation slides and the press release, will be posted to the Company’s website. Materials can be accessed via the Investor Relations section of the website at www.gmfinancial.com.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.	Description of Exhibit
99.1	Press Release dated July 25, 2018, entitled “GM Financial Reports June Quarter 2018 Operating Results”

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		General Motors Financial Company, Inc.
		(Registrant)
Date: July 25, 2018	By:	/s/ SUSAN B. SHEFFIELD
		Susan B. Sheffield
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

GM FINANCIAL REPORTS JUNE QUARTER 2018

OPERATING RESULTS

• June quarter net income of $442 million

• Retail loan and lease originations of $12.3 billion for the June quarter

• Earning assets of $90.4 billion at June 30, 2018

• Available liquidity of $23.1 billion at June 30, 2018

FORT WORTH, TEXAS July 25, 2018 – GENERAL MOTORS FINANCIAL COMPANY, INC.

(“GMFinancial” or the “Company”) announced net income of$442 millionfor the quarter endedJune 30, 2018, compared to$62 millionfor the quarter endedJune 30, 2017. Net income for the six months endedJune 30, 2018was$811 million, compared to$264 millionfor the six months endedJune 30, 2017.Net income from continuing operations for the three and six month periods ended June 30, 2017 was $270 million and $449 million, respectively.

Retail loan originations were $6.0 billionfor the quarter endedJune 30, 2018, compared to$5.1 billionfor the quarter ended March 31, 2018, and$5.3 billionfor the quarter endedJune 30, 2017. Retail loan originations for the six months endedJune 30, 2018were$11.1 billion, compared to$10.9 billionfor the six months endedJune 30, 2017. The outstanding balance of retail finance receivables was$35.7 billionatJune 30, 2018.

Operating lease originations were$6.2 billionforthequarter endedJune 30, 2018, compared to$5.7 billionfor the quarter ended March 31, 2018, and$6.7 billionfor the quarter endedJune 30, 2017. Operating lease originations for the six months endedJune 30, 2018were$11.9 billion, compared to$13.0 billionfor the six months endedJune 30, 2017. Leased vehicles, net was$44.1 billionatJune 30, 2018.

The outstanding balance of commercial finance receivables was$10.7 billionatJune 30, 2018, compared to$10.4 billion at March 31, 2018 and $9.7 billionatJune 30, 2017.

Retail finance receivables 31-60 days delinquent were3.3%of the portfolio atJune 30, 2018and3.4% at June 30, 2017. Accounts more than 60 days delinquent were1.3%of the portfolio atJune 30, 2018and1.5%atJune 30, 2017.

Annualized net charge-offs were1.7%of average retail finance receivables for the quarters endedJune 30, 2018and2017. For the six months endedJune 30, 2018, annualized retail net charge-offs were1.9%, compared to2.0%for the six months endedJune 30, 2017.

The Company had total available liquidity of$23.1 billionatJune 30, 2018, consisting of$4.0 billionof cash and cash equivalents,$15.9 billionof borrowing capacity on unpledged eligible assets,$0.1 billionof borrowing capacity on committed unsecured lines of credit,$1.0 billionof borrowing capacity on the Junior Subordinated Revolving Credit Facility from GM, and$2.0 billion of borrowing capacity on the GM Revolving 364-Day Credit Facility.

Earnings resulting from the Company's equity investment in SAIC-GMAC, a joint venture that conducts auto finance operations in China, were $45 million for the quarter ended June 30, 2018 compared to $41 million for the quarter ended June 30, 2017. Earnings for the six months ended June 30, 2018 were $97 million, compared to $88 million for the six months ended June 30, 2017.

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Operating Results

On October 31, 2017, we completed the sale of certain of our European subsidiaries and branches (collectively, the "European Operations") to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. The European Operations are presented as discontinued operations in our condensed consolidated financial statements for the three and six months ended June 30, 2017. Unless otherwise indicated, information in this release relates to our continuing operations.

About GM Financial

General Motors Financial Company, Inc. is the wholly-owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.com.

Forward-Looking Statements

This presentation contains several “forward-looking statements.” Forward-looking statements are those that use words such as “believe,” “expect,” “intend,” “plan,” “may,” “likely,” “should,” “estimate,” “continue,” “future” or “anticipate” and other comparable expressions. These words indicate future events and trends. Forward-looking statements 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 by us. 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, 2017. Such risks include - but are not limited to - GM’s ability to sell new vehicles that we finance in the markets we serve; the viability of GM-franchised dealers that are commercial loan customers; the availability and cost of sources of financing; our joint venture in China, which we cannot operate solely for our benefit and over which we have limited control; the level of net charge-offs, delinquencies and prepayments on the loans and leases we originate; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; the prices at which used vehicles are sold in the wholesale auction markets; vehicle return rates and the residual value performance on vehicles we lease; interest rate fluctuations and certain related derivatives exposure; foreign currency exchange rate fluctuations; our financial condition and liquidity, as well as future cash flows and earnings; changes in general economic and business conditions; competition; our ability to manage risks related to security breaches and other disruptions to our networks and systems; and changes in business strategy, including expansion of product lines and credit risk appetite, acquisitions and divestitures. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected. 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.

Condensed Consolidated Statements of Income

(Unaudited, in millions)

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Revenue
Finance charge income	$	884	$	812		$	1,750	$	1,564
Leased vehicle income	2,497		2,107			4,944		4,038
Other income	107		71			205		136
Total revenue	3,488		2,990			6,899		5,738
Costs and expenses
Operating expenses	382		333			747		663
Leased vehicle expenses	1,684		1,549			3,471		2,978
Provision for loan losses	128		158			264		369
Interest expense	803		635			1,535		1,231
Total costs and expenses	2,997		2,675			6,017		5,241
Equity income	45		41			97		88
Income from continuing operations before income taxes	536		356			979		585
Income tax provision	94		86			168		136
Income from continuing operations	442		270			811		449
Loss from discontinued operations, net of tax	—		(208		)	—		(185		)
Net income	$	442	$	62		$	811	$	264
Net income attributable to common shareholder	$	427	$	62		$	782	$	264

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Condensed Consolidated Balance Sheets

(Unaudited, in millions)

	June 30, 2018		December 31, 2017
ASSETS
Cash and cash equivalents	$	4,012	$	4,265
Finance receivables, net	45,500		42,172
Leased vehicles, net	44,054		42,882
Goodwill	1,188		1,197
Equity in net assets of non-consolidated affiliate	1,260		1,187
Related party receivables	736		309
Other assets	5,808		5,003
Total assets	$	102,558	$	97,015
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Secured debt	$	39,083	$	39,887
Unsecured debt	45,357		40,830
Deferred income	3,517		3,221
Related party payables	76		92
Other liabilities	3,549		2,691
Total liabilities	91,582		86,721
Shareholders' equity	10,976		10,294
Total liabilities and shareholders' equity	$	102,558	$	97,015

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Operational and Financial Data

(Unaudited, Dollars in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
Originations	2018			2017			2018			2017
Retail finance receivables originations	$	6,051		$	5,253		$	11,129		$	10,860
GM lease originations	$	6,201		$	6,751		$	11,913		$	13,024
GM new vehicle loans and leases as a percentage of total loan and lease originations	90.7		%	88.8		%	90.2		%	88.3		%

	Three Months Ended June 30,				Six Months Ended June 30,
Average Earning Assets	2018		2017		2018		2017
Average retail finance receivables	$	35,081	$	30,432	$	34,253	$	28,960
Average commercial finance receivables	10,333		9,074		10,177		8,520
Average finance receivables	45,414		39,506		44,430		37,480
Average leased vehicles, net	43,805		38,368		43,498		37,055
Average earning assets	$	89,219	$	77,874	$	87,928	$	74,535

Ending Earning Assets	June 30, 2018		June 30, 2017
Retail finance receivables, net of fees	$	35,675	$	31,100
Commercial finance receivables, net of fees	10,698		9,675
Leased vehicles, net	44,054		39,725
Ending earning assets	$	90,427	$	80,500

Total Finance Receivables	June 30, 2018			December 31, 2017
Retail
Retail finance receivables, net of fees(a)	$	35,675		$	32,802
Less: allowance for loan losses	(815		)	(889		)
Total retail finance receivables, net	34,860			31,913
Commercial
Commercial finance receivables, net of fees	10,698			10,312
Less: allowance for loan losses	(58		)	(53		)
Total commercial finance receivables, net	10,640			10,259
Total finance receivables, net	$	45,500		$	42,172

(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $184 million and $228 million at

June 30, 2018 and December 31, 2017.

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Allowance for Loan Losses	June 30, 2018		December 31, 2017
Allowance for loan losses as a percentage of retail finance receivables, net of fees	2.3	%	2.7	%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees	0.5	%	0.5	%

Delinquencies	June 30, 2018		June 30, 2017
Loan delinquency as a percentage of ending retail finance receivables:
31 - 60 days	3.3	%	3.4	%
Greater than 60 days	1.3		1.5
Total	4.6	%	4.9	%

	Three Months Ended June 30,						Six Months Ended June 30,
Charge-offs and Recoveries	2018			2017			2018			2017
Charge-offs	$	298		$	272		$	593		$	570
Less: recoveries	(145		)	(142		)	(268		)	(285		)
Net charge-offs	$	153		$	130		$	325		$	285
Net charge-offs as an annualized percentage of average retail finance receivables	1.7		%	1.7		%	1.9		%	2.0		%
Recovery rate as a percentage of gross repossession charge-offs in North America(a)	52.3		%	53.9		%	51.7		%	52.7		%

(a) Recovery rate for the three months ended March 31, 2018 was revised from 53.1% to 50.9% due to the reclassification of $4 million in non-repossession recoveries.

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Expenses	2018		2017		2018		2017
Operating expenses as an annualized percentage of average earning assets	1.7	%	1.7	%	1.7	%	1.8	%

Investor Relations contact:

Stephen Jones

Vice President, Investor Relations

(817) 302-7119

Investors@gmfinancial.com

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