EX-99.1 2 september2019quarterearnin.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1


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GM FINANCIAL REPORTS THIRD QUARTER 2019
OPERATING RESULTS

Third quarter net income of $516 million
Retail loan and operating lease originations of $11.3 billion for the third quarter
Earning assets of $97.8 billion at September 30, 2019
Available liquidity of $27.2 billion at September 30, 2019

FORT WORTH, TEXAS October 29, 2019GENERAL MOTORS FINANCIAL COMPANY, INC.
(“GM Financial” or the “Company”) announced net income of $516 million for the quarter ended September 30, 2019, compared to $441 million for the quarter ended September 30, 2018. Net income for the nine months ended September 30, 2019 was $1.2 billion, compared to $1.3 billion for the nine months ended September 30, 2018.

Retail loan originations were $5.4 billion for the quarter ended September 30, 2019, compared to $6.7 billion for the quarter ended September 30, 2018. Retail loan originations for the nine months ended September 30, 2019 were $19.7 billion, compared to $17.8 billion for the nine months ended September 30, 2018. The outstanding balance of retail finance receivables, net of fees was $42.0 billion at September 30, 2019, compared to $40.7 billion at December 31, 2018 and $37.9 billion at September 30, 2018.

Operating lease originations were $5.8 billion for the quarter ended September 30, 2019, compared to $5.4 billion for the quarter ended September 30, 2018. Operating lease originations for the nine months ended September 30, 2019 were $17.0 billion, compared to $17.3 billion for the nine months ended September 30, 2018. Leased vehicles, net was $42.5 billion at September 30, 2019, compared to $43.6 billion at December 31, 2018 and $44.1 billion at September 30, 2018.

The outstanding balance of commercial finance receivables, net of fees was $13.3 billion at September 30, 2019, compared to $12.7 billion at December 31, 2018 and $11.1 billion at September 30, 2018.

Retail finance receivables 31-60 days delinquent were 3.0% of the portfolio at September 30, 2019 and 3.4% at September 30, 2018. Accounts more than 60 days delinquent were 1.2% of the portfolio at September 30, 2019 and 1.3% at September 30, 2018.

Annualized net charge-offs were 1.6% of average retail finance receivables for the quarter ended September 30, 2019 and 1.7% for the quarter ended September 30, 2018. For the nine months ended September 30, 2019, annualized net charge-offs were 1.5%, compared to 1.8% for the nine months ended September 30, 2018.

The Company had total available liquidity of $27.2 billion at September 30, 2019, consisting of $3.2 billion of cash and cash equivalents, $20.7 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 $39 million for the quarter ended September 30, 2019, compared to $44 million for the quarter ended September 30, 2018. Earnings for the nine months ended September 30, 2019 were $126 million, compared to $141 million for the nine months ended September 30, 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 and nine months ended September 30, 2019. This recording, along with the presentation slides and this release, will be posted to the Company’s website on October 29, 2019 by 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenue
 
 
 
 
 
 
 
Finance charge income
$
1,043

 
$
917

 
$
3,038

 
$
2,667

Leased vehicle income
2,515

 
2,501

 
7,536

 
7,445

Other income
101

 
100

 
344

 
305

  Total revenue
3,659

 
3,518

 
10,918

 
10,417

Costs and expenses
 
 
 
 
 
 
 
Operating expenses
384

 
369

 
1,131

 
1,116

Leased vehicle expenses
1,574

 
1,677

 
5,025

 
5,148

Provision for loan losses
150

 
180

 
504

 
444

Interest expense
879

 
838

 
2,778

 
2,373

             Total costs and expenses
2,987

 
3,064

 
9,438

 
9,081

Equity income
39

 
44

 
126

 
141

Income before income taxes
711

 
498

 
1,606

 
1,477

Income tax provision
195

 
57

 
416

 
225

Net income
516

 
441

 
1,190

 
1,252

Less: cumulative dividends on preferred stock
23

 
15

 
68

 
44

Net income attributable to common shareholder
$
493

 
$
426

 
$
1,122

 
$
1,208


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Condensed Consolidated Balance Sheets
(Unaudited, in millions)
 
September 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Cash and cash equivalents
$
3,218

 
$
4,883

Finance receivables, net
54,332

 
52,512

Leased vehicles, net
42,527

 
43,559

Goodwill
1,182

 
1,186

Equity in net assets of non-consolidated affiliates
1,381

 
1,355

Related party receivables
696

 
729

Other assets
6,025

 
5,696

Total assets
$
109,361

 
$
109,920

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Secured debt
$
39,029

 
$
42,835

Unsecured debt
50,099

 
48,153

Deferred income
3,708

 
3,605

Related party payables
67

 
63

Other liabilities
3,770

 
3,605

Total liabilities
96,673

 
98,261

Total shareholders' equity
12,688

 
11,659

Total liabilities and shareholders' equity
$
109,361

 
$
109,920


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Operational and Financial Data
(Unaudited, Dollars in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Originations
2019
 
2018
 
2019
 
2018
Retail finance receivables originations
$
5,407

 
$
6,668

 
$
19,682

 
$
17,797

Lease originations
$
5,843

 
$
5,432

 
$
16,964

 
$
17,345




 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Average Earning Assets
2019
 
2018
 
2019
 
2018
Average retail finance receivables
$
42,311

 
$
36,809

 
$
42,103

 
$
35,130

Average commercial finance receivables
13,118

 
10,619

 
12,614

 
10,302

Average finance receivables
55,429

 
47,428

 
54,717

 
45,432

Average leased vehicles, net
42,754

 
44,110

 
43,059

 
43,688

Average earning assets
$
98,183

 
$
91,538

 
$
97,776

 
$
89,120




Ending Earning Assets
September 30, 2019
 
December 31, 2018
Retail finance receivables, net of fees
$
41,967

 
$
40,702

Commercial finance receivables, net of fees
13,298

 
12,721

Leased vehicles, net
42,527

 
43,559

Ending earning assets
$
97,792

 
$
96,982




Total Finance Receivables
September 30, 2019
 
December 31, 2018
Retail
 
 
 
Retail finance receivables, net of fees
$
41,967

 
$
40,702

Less: allowance for loan losses
(856
)
 
(844
)
Total retail finance receivables, net
41,111

 
39,858

Commercial
 
 
 
Commercial finance receivables, net of fees
13,298

 
12,721

Less: allowance for loan losses
(77
)
 
(67
)
Total commercial finance receivables, net
13,221

 
12,654

Total finance receivables, net
$
54,332

 
$
52,512

    













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Allowance for Loan Losses
September 30, 2019
 
December 31, 2018
Allowance for loan losses as a percentage of retail finance receivables, net of fees
2.0
%
 
2.1
%
Allowance for loan losses as a percentage of commercial finance receivables, net of fees
0.6
%
 
0.5
%



Delinquencies
September 30, 2019
 
September 30, 2018
Loan delinquency as a percentage of ending retail finance receivables:
 
 
 
    31 - 60 days
3.0
%
 
3.4
%
    Greater than 60 days
1.2

 
1.3

Total
4.2
%
 
4.7
%



 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Charge-offs and Recoveries
2019
 
2018
 
2019
 
2018
Charge-offs
$
300

 
$
285

 
$
886

 
$
878

Less: recoveries
(133
)
 
(130
)
 
(410
)
 
(398
)
Net charge-offs
$
167

 
$
155

 
$
476

 
$
480

Net charge-offs as an annualized percentage of average retail finance receivables
1.6
%
 
1.7
%
 
1.5
%
 
1.8
%


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Operating Expenses
2019
 
2018
 
2019
 
2018
Operating expenses as an annualized percentage of average earning assets
1.6
%
 
1.6
%
 
1.5
%
 
1.7
%





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


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