EX-99.1 2 dex991.htm PRESS RELEASE Press Release

 

Exhibit 99.1

LOGO

GM FINANCIAL REPORTS SEPTEMBER QUARTER OPERATING RESULTS

 

   

Earnings of $51 million, including after-tax acquisition expenses of $30 million

 

   

Loan originations of $959 million

 

   

Annualized net losses were 5.4%

 

   

Total available liquidity of $856 million

FORT WORTH, TEXAS Nov. 9, 2010GENERAL MOTORS FINANCIAL COMPANY, INC., formerly known as AmeriCredit Corp. (“GM Financial” or the “Company”), announced net income of $51 million for the quarter ended September 30, 2010. Net income for the quarter was adversely impacted by $43 million ($30 million after tax) of expenses directly related to the acquisition of the Company by General Motors. The Company reported net income of $26 million for the same period a year earlier.

Originations were $959 million for the quarter ended September 30, 2010, compared to $906 million for the quarter ended June 30, 2010 and $229 million for the quarter ended September 30, 2009. Finance receivables totaled $8.7 billion at September 30, 2010, compared to $10.0 billion at September 30, 2009.

Annualized net charge-offs were 5.4% of average finance receivables for the quarter ended September 30, 2010, compared to 8.4% for the quarter ended September 30, 2009.

Finance receivables 31-to-60 days delinquent were 6.2% of the portfolio at September 30, 2010, compared to 7.6% at September 30, 2009. Accounts more than 60 days delinquent were 2.5% of the portfolio at September 30, 2010, compared to 3.8% a year ago.

The allowance for loan losses as a percentage of finance receivables was 6.1% at September 30, 2010, compared to 6.6% at June 30, 2010 and 8.2% at September 30, 2009.

The Company had total available liquidity of $856 million at September 30, 2010, consisting of $538 million of unrestricted cash and approximately $318 million of borrowing capacity on unpledged eligible receivables.

 

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About GM Financial

General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States. GM Financial has approximately 3,000 employees in the U.S. and Canada, 800,000 customers and $9 billion in auto receivables. The company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties detailed from time to time in the Company’s filings and reports with the Securities and Exchange Commission including the Company’s annual report on Form 10-K for the year ended June 30, 2010. Such risks include – but are not limited to – variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, reliance on warehouse financing and capital markets, the ability to continue to securitize loans, the continued availability of credit enhancement for securitization transactions on acceptable terms, fluctuating interest rates, competition, regulatory and legal changes, the high degree of risk associated with subprime borrowers, and exposure to litigation. These forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does 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.

Consolidated Statements of Income

(Unaudited, Dollars in Thousands)

 

     Three Months Ended
September 30,
 
   2010     2009  

Revenue:

    

Finance charge income

   $ 342,349      $ 389,796   

Other income

     30,275        23,488   
                
     372,624        413,284   
                

Costs and expenses:

    

Operating expenses

     68,855        68,862   

Leased vehicles expenses

     6,539        10,110   

Provision for loan losses

     74,618        157,951   

Interest expense

     89,364        130,148   

Acquisition expenses

     42,651     

Restructuring charges

     (39     (37
                
     281,988        367,034   
                

Income before income taxes

     90,636        46,250   

Income tax provision

     39,336        20,489   
                

Net income

   $ 51,300      $ 25,761   
                

 

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Consolidated Balance Sheets

(Unaudited, Dollars in Thousands)

 

     September 30,
2010
     June 30,
2010
     September 30,
2009
 

Cash and cash equivalents

   $ 537,529       $ 282,273       $ 462,106   

Finance receivables, net

     8,147,086         8,160,208         9,195,075   

Restricted cash – securitization notes payable

     975,942         930,155         873,304   

Restricted cash – credit facilities

     134,468         142,725         170,281   

Property and equipment, net

     36,592         37,734         42,054   

Leased vehicles, net

     54,730         94,677         143,819   

Deferred income taxes

     77,999         81,836         54,659   

Income tax receivable

           84,387   

Other assets

     143,064         151,425         190,047   
                          

Total assets

   $ 10,107,410       $ 9,881,033       $ 11,215,732   
                          

Credit facilities

   $ 617,415       $ 598,946       $ 1,019,068   

Securitization notes payable

     6,273,224         6,108,976         7,266,456   

Senior notes

     70,620         70,620         91,620   

Convertible debt

     419,693         414,068         397,763   

Accrued taxes and expenses

     208,438         210,013         153,725   

Interest rate swap agreements

     60,895         70,421         119,756   

Other liabilities

     6,504         7,565         17,071   
                          

Total liabilities

     7,656,789         7,480,609         9,065,459   
                          

Shareholders’ equity

     2,450,621         2,400,424         2,150,273   
                          

Total liabilities and shareholders’ equity

   $ 10,107,410       $ 9,881,033       $ 11,215,732   
                          

 

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Consolidated Statements of Cash Flows

(Unaudited, Dollars in Thousands)

 

     Three Months Ended
September 30,
 
   2010     2009  

Cash flows from operating activities:

    

Net income

   $ 51,300      $ 25,761   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     14,649        22,824   

Accretion and amortization of fees

     (942     2,375   

Provision for loan losses

     74,618        157,951   

Deferred income taxes

     452        15,517   

Non-cash interest charges on convertible debt

     5,625        5,249   

Stock-based compensation expense

     5,019        2,968   

Amortization of warrant costs

       1,968   

Other

     (13,800     (6,817

Changes in assets and liabilities:

    

Income tax receivable

       113,207   

Other assets

     16,373        1,305   

Accrued taxes and expenses

     (8,552     (6,657
                

Net cash provided by operating activities

     144,742        335,651   
                

Cash flows from investing activities:

    

Purchases of receivables

     (940,763     (217,920

Principal collections and recoveries on receivables

     883,807        912,121   

Net change in restricted cash and other

     2,351        13,335   
                

Net cash (used) provided by investing activities

     (54,605     707,536   
                

Cash flows from financing activities:

    

Net change in credit facilities

     (68,030     (611,065

Net change in securitization notes payable

     254,488        (160,950

Cash settlement of share based awards

     (16,062  

Proceeds from issuance of common stock

     2,138        1,136   

Other net changes

     (7,373     (2,823
                

Net cash provided (used) by financing activities

     165,161        (773,702
                

Net increase in cash and cash equivalents

     255,298        269,485   

Effect of Canadian exchange rate changes on cash and cash equivalents

     (42     (666

Cash and cash equivalents at beginning of period

     282,273        193,287   
                

Cash and cash equivalents at end of period

   $ 537,529      $ 462,106   
                

 

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Other Financial Data

(Unaudited, Dollars in Thousands)

 

     Three Months Ended
September 30,
 
   2010      2009  

Origination volume

   $ 959,004       $ 229,073   

Loans securitized

     1,164,267         981,056   

Average finance receivables

   $ 8,718,310       $ 10,482,453   

 

     September 30,
2010
    June 30,
2010
    September 30,
2009
 

Finance receivables:

      

Principal

   $ 8,675,575      $ 8,733,518      $ 10,021,033   

Allowance for loan losses

     (528,489     (573,310     (825,958
                        
   $ 8,147,086      $ 8,160,208      $ 9,195,075   
                        

Allowance as a percent of ending finance receivables

     6.1     6.6     8.2
                        

 

     September 30,
2010
    June 30,
2010
    September 30,
2009
 

Loan delinquency as a percent of ending finance receivables:

      

31 - 60 days

     6.2     6.2     7.6

Greater than 60 days

     2.5        2.7        3.8   
                        

Total

     8.7     8.9     11.4
                        

 

     Three Months Ended
September 30,
 
   2010     2009  

Contracts receiving a payment deferral as an average quarterly percentage of average finance receivables

     6.1     7.9

Net charge-offs

   $ 119,439      $ 222,633   

Annualized net charge-offs as a percent of average finance receivables

     5.4     8.4

Net recoveries as a percent of gross repossession charge-offs

     46.4     42.7

 

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Components of net margin:

 

     Three Months Ended
September 30,
 
   2010     2009  

Finance charge income

   $ 342,349      $ 389,796   

Other income

     30,275        23,488   

Interest expense

     (89,364     (130,148
                

Net margin

   $     283,260      $     283,136   
                

Annualized net margin as a percent of average finance receivables:

 

     Three Months Ended
September 30,
 
   2010     2009  

Finance charge income

     15.6     14.7

Other income

     1.4        0.9   

Interest expense

     (4.1     (4.9
                

Net margin

     12.9     10.7
                
     Three Months Ended
September 30,
 
   2010     2009  

Operating expenses

   $ 68,855      $ 68,862   
                

Annualized operating expenses as a percent of average finance receivables

     3.1     2.6
                
     September 30,
2010
    September 30,
2009
 

Leverage

     3.5x        4.7x   
                

Contact:

Caitlin DeYoung

(817) 302-7394

 

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