EX-99.1 2 march2019quarterearningsre.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1


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GM FINANCIAL REPORTS FIRST QUARTER 2019
OPERATING RESULTS

•
First quarter net income of $271 million
•
Retail loan and operating lease originations of $12.4 billion for the first quarter
•
Earning assets of $97.2 billion at March 31, 2019
•
Available liquidity of $28.3 billion at March 31, 2019

FORT WORTH, TEXAS April 30, 2019 – GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $271 million for the quarter ended March 31, 2019, compared to $318 million for the quarter ended December 31, 2018, and $369 million for the quarter ended March 31, 2018.

Retail loan originations were $7.2 billion for the quarter ended March 31, 2019, compared to $8.4 billion for the quarter ended December 31, 2018, and $5.1 billion for the quarter ended March 31, 2018. The outstanding balance of retail finance receivables, net of fees was $41.8 billion at March 31, 2019, compared to $40.7 billion at December 31, 2018 and $34.3 billion at March 31, 2018.

Operating lease originations were $5.2 billion for the quarter ended March 31, 2019, compared to $5.2 billion for the quarter ended December 31, 2018, and $5.7 billion for the quarter ended March 31, 2018. Leased vehicles, net was $43.1 billion at March 31, 2019, compared to $43.6 billion at December 31, 2018 and $43.4 billion at March 31, 2018.

The outstanding balance of commercial finance receivables, net of fees was $12.4 billion at March 31, 2019, compared to $12.7 billion at December 31, 2018 and $10.4 billion at March 31, 2018.

Retail finance receivables 31-60 days delinquent were 2.5% of the portfolio at March 31, 2019 and 3.7% at March 31, 2018. Accounts more than 60 days delinquent were 1.0% of the portfolio at March 31, 2019 and 1.7% at March 31, 2018.

Annualized net charge-offs were 1.6% of average retail finance receivables for the quarter ended March 31, 2019 and 2.1% for the quarter ended March 31, 2018.

The Company had total available liquidity of $28.3 billion at March 31, 2019, consisting of $5.3 billion of cash and cash equivalents, $19.7 billion of borrowing capacity on unpledged eligible assets, $0.3 billion of borrowing capacity on committed unsecured lines of credit, $1.0 billion of 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 joint ventures that conduct automotive finance operations in China were $45 million for the quarter ended March 31, 2019 compared to $42 million for the quarter ended December 31, 2018, and $52 million for the quarter ended March 31, 2018.

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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. In lieu of a conference call, management recorded remarks addressing the Company’s results of operations for the quarter ended March 31, 2019. This recording, along with the presentation slides and this release, will be posted to the Company’s website on April 30, 2019 at 11:00 a.m. central time. The recording and materials can be accessed via the Investor Relations section of the Company’s website at www.gmfinancial.com.

Forward-Looking Statements

This release 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, 2018. 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; changes in the automotive industry that result in a change in demand for vehicles and related vehicle financing; the sufficiency, availability and cost of sources of financing, including credit facilities, securitization programs and secured and unsecured debt issuances; our joint ventures in China, which we cannot operate solely for our benefit and over which we have limited control; the adequacy of our underwriting criteria for loans and leases and the level of net charge-offs, delinquencies and prepayments on the loans and leases we purchase or originate; the adequacy of our allowance for loan losses on our finance receivables; the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements; adverse determinations with respect to the application of existing laws, or the results of any audits from tax authorities, as well as changes in tax laws and regulations, supervision, enforcement and licensing across various jurisdictions; the prices at which used vehicles are sold in the wholesale auction markets; vehicle return rates, our ability to estimate residual value at the inception of a lease and the residual value performance on vehicles we lease; interest rate fluctuations and certain related derivatives exposure; foreign currency exchange rate fluctuations and other risks applicable to our operations outside of the U.S.; changes to the LIBOR calculation process and potential phasing out of LIBOR; our ability to effectively manage capital or liquidity consistent with evolving business or operational needs, risk management standards, and regulatory or supervisory requirements; changes in local, regional, national or international economic, social or political conditions; our ability to maintain and expand our market share due to competition in the automotive finance industry from a large number of banks, credit unions, independent finance companies and other captive automotive finance subsidiaries; our ability to secure private customer and employee data or our proprietary information, manage risks related to security breaches and other disruptions to our networks and systems and comply with enterprise data regulations in all key market regions; 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 March 31,
 
2019
 
2018
Revenue
 
 
 
Finance charge income
$
987

 
$
866

Leased vehicle income
2,509

 
2,447

Other income
124

 
98

  Total revenue
3,620

 
3,411

Costs and expenses
 
 
 
Operating expenses
370

 
365

Leased vehicle expenses
1,814

 
1,787

Provision for loan losses
175

 
136

Interest expense
947

 
732

             Total costs and expenses
3,306

 
3,020

Equity income
45

 
52

Income before income taxes
359

 
443

Income tax provision
88

 
74

Net income
271

 
369

Less: cumulative dividends on preferred stock
23

 
14

Net income attributable to common shareholder
$
248

 
$
355


3

Condensed Consolidated Balance Sheets
(Unaudited, in millions)
 
March 31, 2019
 
December 31, 2018
ASSETS
 
 
 
Cash and cash equivalents
$
5,286

 
$
4,883

Finance receivables, net
53,229

 
52,512

Leased vehicles, net
43,052

 
43,559

Goodwill
1,187

 
1,186

Equity in net assets of non-consolidated affiliates
1,429

 
1,355

Related party receivables
640

 
729

Other assets
6,422

 
5,696

Total assets
$
111,245

 
$
109,920

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Secured debt
$
41,625

 
$
42,835

Unsecured debt
50,506

 
48,153

Deferred income
3,633

 
3,605

Related party payables
66

 
63

Other liabilities
3,431

 
3,605

Total liabilities
99,261

 
98,261

Total shareholders' equity
11,984

 
11,659

Total liabilities and shareholders' equity
$
111,245

 
$
109,920


4

Operational and Financial Data
(Unaudited, Dollars in millions)
 
Three Months Ended March 31,
Originations
2019
 
2018
Retail finance receivables originations
$
7,162

 
$
5,078

GM lease originations
$
5,210

 
$
5,712




 
Three Months Ended March 31,
Average Earning Assets
2019
 
2018
Average retail finance receivables
$
41,591

 
$
33,471

Average commercial finance receivables
12,167

 
10,068

Average finance receivables
53,758

 
43,539

Average leased vehicles, net
43,394

 
43,177

Average earning assets
$
97,152

 
$
86,716




Ending Earning Assets
March 31, 2019
 
December 31, 2018
Retail finance receivables, net of fees
$
41,785

 
$
40,702

Commercial finance receivables, net of fees
12,368

 
12,721

Leased vehicles, net
43,052

 
43,559

Ending earning assets
$
97,205

 
$
96,982




Total Finance Receivables
March 31, 2019
 
December 31, 2018
Retail
 
 
 
Retail finance receivables, net of fees
$
41,785

 
$
40,702

Less: allowance for loan losses
(862
)
 
(844
)
Total retail finance receivables, net
40,923

 
39,858

Commercial
 
 
 
Commercial finance receivables, net of fees
12,368

 
12,721

Less: allowance for loan losses
(62
)
 
(67
)
Total commercial finance receivables, net
12,306

 
12,654

Total finance receivables, net
$
53,229

 
$
52,512

    













5

Allowance for Loan Losses
March 31, 2019
 
December 31, 2018
Allowance for loan losses as a percentage of retail finance receivables, net of fees
2.1
%
 
2.1
%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.5
%
 
0.5
%



Delinquencies
March 31, 2019
 
March 31, 2018
Loan delinquency as a percentage of ending retail finance receivables:
 
 
 
    31 - 60 days
2.5
%
 
3.7
%
    Greater than 60 days
1.0

 
1.7

Total
3.5
%
 
5.4
%



 
Three Months Ended March 31,
Charge-offs and Recoveries
2019
 
2018
Charge-offs
$
307

 
$
295

Less: recoveries
(145
)
 
(123
)
Net charge-offs
$
162

 
$
172

Net charge-offs as an annualized percentage of average retail finance receivables
1.6
%
 
2.1
%


 
Three Months Ended March 31,
Operating Expenses
2019
 
2018
Operating expenses as an annualized percentage of average earning assets
1.5
%
 
1.7
%





Investor Relations contact:
Stephen Jones
Vice President, Investor Relations
(817) 302-7119
Investors@gmfinancial.com


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