EX-99.1 2 d390601dex991.htm PRESS RELEASE DATED AUGUST 2, 2012 Press Release dated August 2, 2012

Exhibit 99.1

GM FINANCIAL REPORTS JUNE QUARTER OPERATING RESULTS

 

   

Earnings of $136 million

 

   

Loan and lease originations of $1.9 billion

 

   

Available liquidity of $2.1 billion

 

   

Annualized net credit losses of 1.5%

FORT WORTH, TEXAS August 2, 2012 – GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $136 million for the quarter ended June 30, 2012, compared to $96 million for the quarter ended June 30, 2011. Net income for the six months ended June 30, 2012 was $249 million, compared to $173 million for the six months ended June 30, 2011

Loan originations were $1.5 billion for the quarter ended June 30, 2012, compared to $1.4 billion for the quarter ended March 31, 2012, and $1.3 billion for the quarter ended June 30, 2011. Loan originations for the six months ended June 30, 2012 were $2.9 billion, compared to $2.5 billion for the six months ended June 30, 2011. The outstanding balance of consumer finance receivables totaled $10.4 billion at June 30, 2012.

Lease originations of General Motors Company (“GM”) vehicles were $394 million for the quarter ended June 30, 2012, compared to $384 million for the quarter ended March 31, 2012 and $173 million for the quarter ended June 30, 2011. Lease originations for the six months ended June 30, 2012 were $778 million, compared to $484 million for the six months ended June 30, 2011. Leased vehicles, net, totaled $1.4 billion at June 30, 2012.

Finance receivables 31-to-60 days delinquent were 4.1% of the portfolio at June 30, 2012, compared to 4.4% at June 30, 2011. Accounts more than 60 days delinquent were 1.5% of the portfolio at June 30, 2012, compared to 1.7% a year ago.

Annualized net credit losses were 1.5% of average consumer finance receivables for the quarter ended June 30, 2012, compared to 2.4% for the quarter ended June 30, 2011. For the six months ended June 30, 2012, annualized net credit losses were 2.0%, compared to 3.2% last year.

 

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The Company had total available liquidity of $2.1 billion at June 30, 2012, consisting of $952 million of unrestricted cash, approximately $891 million of borrowing capacity on unpledged eligible assets and $300 million on a line of credit from GM.

About GM Financial

General Motors Financial Company, Inc. provides auto finance solutions through auto dealers across the United States and Canada. GM Financial has approximately 3,600 employees, over 800,000 customers and $12 billion in finance receivables and leased vehicles. The Company is a wholly-owned subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. For more information, visit www.gmfinancial.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 December 31, 2011. Such risks include – but are not limited to – changes in general economic and business conditions, GM’s ability to sell new vehicles in the United States and Canada that we finance, interest rate fluctuations, our financial condition and liquidity, as well as future cash flows and earnings, competition, the effect, interpretation or application of new or existing laws, regulations, court decisions and accounting pronouncements, the availability of sources of financing, the level of net credit losses, delinquencies and prepayments on the loans and leases we originate, the prices at which used cars are sold in the wholesale auction markets, changes in business strategy, including expansion of product lines and credit risk appetite and significant 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, in Thousands)

 

     Three Months Ended    Six Months Ended
     June 30,    June 30,
     2012    2011    2012    June 30, 2011

Revenue

                   

Finance charge income

     $ 403,317        $ 290,916        $ 761,573        $ 558,762  

Other income

       83,194          38,969          156,341          66,290  
    

 

 

      

 

 

      

 

 

      

 

 

 
       486,511          329,885          917,914          625,052  
    

 

 

      

 

 

      

 

 

      

 

 

 

Costs and expenses

                   

Operating expenses

       92,717          85,379          190,586          161,785  

Leased vehicles expenses

       51,011          13,098          91,657          21,582  

Provision for loan losses

       61,876          44,570          110,430          83,994  

Interest expense

       64,176          42,817          127,268          83,434  
    

 

 

      

 

 

      

 

 

      

 

 

 
       269,780          185,864          519,941          350,795  
    

 

 

      

 

 

      

 

 

      

 

 

 

Income before income taxes

       216,731          144,021          397,973          274,257  

Income tax provison

       80,436          48,203          149,399          101,201  
    

 

 

      

 

 

      

 

 

      

 

 

 

Net income

     $ 136,295        $ 95,818        $ 248,574        $ 173,056  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

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Consolidated Balance Sheets

(Unaudited, in Thousands)

 

     June 30, 2012      December 31, 2011      June 30, 2011  

Assets

        

Cash and cash equivalents

   $ 952,091       $ 572,297       $ 525,728   

Finance receivables, net

     10,030,657         9,162,492         8,587,015   

Restricted cash – securitization notes payable

     705,022         919,283         937,162   

Restricted cash – credit facilities

     115,396         136,556         109,386   

Property and equipment, net

     50,079         47,440         46,810   

Leased vehicles, net

     1,366,785         809,491         439,430   

Deferred income taxes

     147,366         108,684         119,975   

Goodwill

     1,107,966         1,107,982         1,108,696   

Other assets

     164,190         178,695         210,971   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 14,639,552       $ 13,042,920       $ 12,085,173   
  

 

 

    

 

 

    

 

 

 

Liabilities and Shareholder’s Equity

        

Liabilities

        

Credit facilities

   $ 523,235       $ 1,099,391       $ 422,756   

Securitization notes payable

     8,626,823         6,937,841         6,880,681   

Senior notes

     500,000         500,000         569,870   

Convertible senior notes

     500         500         1,447   

Accounts payable and accrued expenses

     203,486         160,172         185,139   

Deferred income

     56,608         24,987         18,222   

Taxes payable

     90,777         85,477         75,203   

Intercompany taxes payable

     478,161         300,306         186,155   

Interest rate swap and cap agreements

     2,732         11,208         35,206   
  

 

 

    

 

 

    

 

 

 

Total liabilities

     10,482,322         9,119,882         8,374,679   

Shareholder’s equity

     4,157,230         3,923,038         3,710,494   
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholder’s equity

   $ 14,639,552       $ 13,042,920       $ 12,085,173   
  

 

 

    

 

 

    

 

 

 

 

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Consolidated Statements of Cash Flows

(Unaudited, in Thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2012     2011     2012     2011  

Cash flows from operating activities:

        

Net income

   $ 136,295      $ 95,818      $ 248,574      $ 173,056   

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

        

Depreciation and amortization

     61,796        23,176        112,361        41,044   

Amortization of purchase accounting premium

     (9,053     (21,574     (18,997     (44,691

Amortization of carrying value adjustment

     (11,823     58,995        8,346        126,922   

Accretion and amortization of loan and leasing fees

     (13,176     (4,978     (24,263     (7,914

Provision for loan losses

     61,876        44,570        110,430        83,994   

Deferred income taxes

     (28,082     59,645        (37,734     37,856   

Stock-based compensation expense

     1,955        3,128        2,539        6,053   

Other

     (3,341     (8,336     (8,897     (17,180

Changes in assets and liabilities, net of assets and liabilities acquired:

        

Other assets

     (11,069     14,523        (13,012     26,044   

Accounts payable and accrued expenses

     (6,492     3,544        19,182        (9,221

Taxes payable

     1,193        (104,430     5,301        (87,313

Intercompany taxes payable

     105,477        89,124        177,855        143,941   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     285,556        253,205        581,685        472,591   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of consumer finance receivables, net

     (1,505,445     (1,318,304     (2,870,107     (2,453,086

Principal collections and recoveries on consumer finance receivables

     1,024,088        925,885        2,040,006        1,880,176   

Fundings of commercial finance receivables

     (173,158       (173,158  

Collections of commercial finance receivables

     46,237          46,237     

Net purchases of leased vehicles

     (304,474     (89,361     (602,922     (396,687

Net change in restricted cash and other

     163,135        87,535        247,424        (23,351
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (749,617     (394,245     (1,312,520     (992,948
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Net change in credit facilities

     (249,854     (988,493     (574,134     (407,482

Net change in securitization notes payable

     1,076,524        840,205        1,707,824        795,147   

Issuance of senior notes

       500,000          500,000   

Other net changes

     (18,230     (16,926     (22,991     (34,735
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     808,440        334,786        1,110,699        852,930   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     344,379        193,746        379,864        332,573   

Effect of Canadian exchange rate changes on cash and cash equivalents

     (1,079     (1,201     (70     (1,399

Cash and cash equivalents at beginning of period

     608,791        333,183        572,297        194,554   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 952,091      $ 525,728      $ 952,091      $ 525,728   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Other Financial Data

(Unaudited, Dollars in Thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2012     2011     2012     2011  

Consumer loan originations

   $ 1,489,402      $ 1,349,222      $ 2,885,159      $ 2,487,143   

GM lease originations

     394,360        172,764        778,159        483,711   

GM new vehicle loans as a percent of total loan originations

     30.9     30.0     30.2     26.4

GM new vehicle loans and leases as a percent of total loan and lease originations

     45.4     38.0     45.0     38.4

Consumer loans securitized

   $ 2,433,616      $ 2,068,978      $ 4,349,335      $ 2,917,788   

Commercial finance fundings

     173,796          173,796     
    

Three Months Ended

June 30,

   

Six Months Ended

June 30,

 
     2012     2011     2012     2011  

Average consumer finance receivables

   $ 10,237,530      $ 8,926,612      $ 10,030,179      $ 8,797,154   

Average commercial finance receivables

     55,921          31,955     
  

 

 

   

 

 

   

 

 

   

 

 

 

Average finance receivables

     10,293,451        8,926,612        10,062,134        8,797,154   

Average leased vehicles, net

     1,231,419        377,928        1,100,369        243,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average earning assets

   $ 11,524,870      $ 9,304,540      $ 11,162,503      $ 9,040,259   
  

 

 

   

 

 

   

 

 

   

 

 

 

Finance Receivables

Consumer:

     June 30, 2012     December 31, 2011     June 30, 2011  

Pre-acquisition consumer finance receivables—outstanding balance

   $ 3,100,850   $ 4,366,075      $ 5,886,828   
  

 

 

   

 

 

   

 

 

 

Pre-acquisition consumer finance receivables—carrying value

     2,812,205        4,027,361        5,471,957   

Post-acquisition consumer finance receivables, net of fees

     7,340,242     5,313,899        3,222,584   
  

 

 

   

 

 

   

 

 

 
   $ 10,152,447      $ 9,341,260      $ 8,694,541   

Less: allowance for loan losses on post-acquisition consumer finance receivables

     (249,350     (178,768     (107,526
  

 

 

   

 

 

   

 

 

 

Total consumer finance receivables, net

     9,903,097        9,162,492        8,587,015   
  

 

 

   

 

 

   

 

 

 

Commercial:

      

Commercial finance receivables, net of fees

     127,560       

Less: allowance for loan losses on commercial finance receivables

      
  

 

 

     

Total commercial finance receivables, net

     127,560       
  

 

 

   

 

 

   

 

 

 

Total finance receivables, net

   $ 10,030,657      $ 9,162,492      $ 8,587,015   
  

 

 

   

 

 

   

 

 

 

Allowance for loan losses as a percent of post-acquisition consumer finance receivables

     3.4     3.4     3.3
  

 

 

   

 

 

   

 

 

 

 

* The outstanding balance of consumer finance receivables totaling $10.4 billion at June 30, 2012, is the sum of pre-acquisition consumer finance receivables – outstanding balance and post-acquisition consumer finance receivables, net of fees.

 

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     June 30, 2012     June 30, 2011  

Loan delinquency as a percent of ending consumer finance receivables:

    

31—60 days

     4.1     4.4

Greater than 60 days

     1.5        1.7   
  

 

 

   

 

 

 

Total

     5.6     6.1
  

 

 

   

 

 

 

The Company analyzes portfolio performance of both the pre-acquisition and post-acquisition consumer finance receivable portfolios on a combined basis. This information allows for the ability to analyze credit loss trends of the combined portfolio and also facilitates comparisons of current and historical results.

The following is a reconciliation of charge-offs on the post-acquisition portfolio to credit losses on the combined portfolio:

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2012     2011     2012     2011  

Charge-offs

   $ 52,741      $ 6,738      $ 103,799      $ 8,547   

Adjustments to reflect write-offs of the contractual amounts on the pre-acquisition portfolio

     65,147        123,072        168,764        304,900   
  

 

 

   

 

 

   

 

 

   

 

 

 

Credit losses on the combined portfolio

   $ 117,888      $ 129,810      $ 272,563      $ 313,447   
  

 

 

   

 

 

   

 

 

   

 

 

 

Credit losses on the combined portfolio

   $ 117,888      $ 129,810      $ 272,563      $ 313,447   

Less: recoveries

     (80,315     (75,550     (174,300     (174,351
  

 

 

   

 

 

   

 

 

   

 

 

 

Net credit losses on the combined portfolio

   $ 37,573      $ 54,260      $ 98,263      $ 139,096   
  

 

 

   

 

 

   

 

 

   

 

 

 

Annualized net credit losses as a percent of average consumer finance receivables

     1.5     2.4     2.0     3.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Recoveries as a percent of gross repossession credit losses

     67.7     56.4     62.6     53.6
  

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2012     June 30, 2011     2012     2011  

Contracts receiving a payment deferral as an average quarterly percent of average consumer finance Receivables

     5.3     4.9     5.3     5.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

   $ 92,717      $ 85,379      $ 190,586      $ 161,785   
  

 

 

   

 

 

   

 

 

   

 

 

 

Annualized operating expenses as a percent of average earning assets

     3.2     3.7     3.4     3.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Contact:

Investor Relations

(817) 302-7000

 

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