Exhibit 99.1
For Release: August 12, 2010, 7:30 a.m. ET
GM Second Quarter 2010 Results Show Sustained Progress
GM achieves second consecutive quarter of profitability and positive cash flow
Net income of $1.3 billion and EPS of $2.55, free cash flow of $2.8 billion
DETROIT, Mich.—General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM’s second quarter earnings before interest and tax (EBIT) was $2.0 billion.
GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.
Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.
“I am pleased with our progress on achieving our business objectives,” said Chris Liddell, vice chairman and chief financial officer. “We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow.”
# # #
Forward-Looking Statements
In this press release and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology; our ability to realize successful vehicle applications of new technology; and our ability to comply with the continuing requirements related to U.S. and other government support.
GM’s most recent annual report on Form 10-K and quarterly report on Form 10-Q provides information about these and other factors, which we may revise or supplement in future reports to the SEC.
Exhibit 1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The accompanying tables and charts for securities analysts include earnings (loss) before interest and taxes (EBIT), adjusted EBIT and free cash flow which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) and have not been audited or reviewed by GM’s independent auditors. EBIT, adjusted EBIT and free cash flow are considered non-GAAP financial measures.
Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM’s operating results because they exclude amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. Management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether GM’s plan to return to sustained profitability is on target. Accordingly, GM believes these non-GAAP financial measures are useful in allowing for greater transparency of GM’s core operations and they are therefore used by management in its financial and operational decision-making.
While management believes that these non-GAAP financial measures provide useful information, they are not operating measures under U.S. GAAP and there are limitations associated with their use. GM’s calculation of these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP financial measures has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net income (loss) or Net income (loss) attributable to common stockholders. Due to these limitations, these non-GAAP financial measures are used as a supplement to U.S. GAAP measures.
The following table summarizes the reconciliation of EBIT to its most comparable U.S. GAAP measure (dollars in millions):
Successor | ||||||||||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended March 31, 2010 | Three Months Ended December 31, 2009 | |||||||||||||
Operating segments | ||||||||||||||||
GMNA(a) | $ | 1,592 | $ | 2,810 | $ | 1,218 | $ | (3,443 | ) | |||||||
GME(a)(b) | (160 | ) | (637 | ) | (477 | ) | (799 | ) | ||||||||
GMIO(a)(b) | 672 | 1,838 | 1,166 | 722 | ||||||||||||
Total operating segments | 2,104 | 4,011 | 1,907 | (3,520 | ) | |||||||||||
Corporate and eliminations(b) | (71 | ) | (154 | ) | (83 | ) | (526 | ) | ||||||||
EBIT | 2,033 | 3,857 | 1,824 | (4,046 | ) | |||||||||||
Interest income | 114 | 204 | 90 | 75 | ||||||||||||
Interest expense | 250 | 587 | 337 | 329 | ||||||||||||
Income tax expense (benefit) | 361 | 870 | 509 | (861 | ) | |||||||||||
Net income (loss) attributable to stockholders | $ | 1,536 | $ | 2,604 | $ | 1,068 | $ | (3,439 | ) | |||||||
(a) | Interest and income taxes are recorded centrally in Corporate; therefore, there are no reconciling items for GM’s operating segments between EBIT and Net income (loss) attributable to stockholders. |
(b) | In the three months ended June 30, 2010 we changed our managerial reporting structure so that certain entities geographically located within Russia and Uzbekistan were transferred from our GME segment to our GMIO segment. We have revised the segment presentation for all periods presented. |
1
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
The following tables summarize the reconciliation of adjusted EBIT to EBIT and free cash flow to Net cash provided by (used in) operating activities (dollars in millions):
Successor | |||||||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended March 31, 2010 | Three Months Ended December 31, 2009 | ||||||||||
Adjusted EBIT | $ | 2,033 | $ | 3,734 | $ | 1,701 | $ | (954 | ) | ||||
Adjustments | — | 123 | 123 | (3,092 | ) | ||||||||
EBIT | $ | 2,033 | $ | 3,857 | $ | 1,824 | $ | (4,046 | ) | ||||
Free Cash Flow(a) | $ | 2,834 | $ | 3,804 | $ | 970 | $ | (2,919 | ) | ||||
Capital expenditures(a) | 1,011 | 1,851 | 840 | 1,033 | |||||||||
Net cash provided by (used in) operating activities(a) | $ | 3,845 | $ | 5,655 | $ | 1,810 | $ | (1,886 | ) | ||||
(a) | In the three months ended June 30, 2010 we identified several items which had not been properly classified in our condensed consolidated statement of cash flows for the three months ended March 31, 2010. For the six months ended June 30, 2010, we have correctly presented these items in our condensed consolidated statement of cash flows and corrected the amounts presented for the three months ended March 31, 2010. |
In the three months ended March 31, 2010 Adjustments included the following:
• | Gain of $123 million as a result of the sale of Saab Automobile AB to Spyker Cars NV. |
In the three months ended December 31, 2009 Adjustments included the following:
• | Settlement loss of $2.6 billion related to the termination of GM’s UAW hourly retiree medical plan and Mitigation Plan, under which GM agreed that an independent VEBA would be formed to pay certain healthcare costs of UAW hourly retirees and their beneficiaries; |
• | Impairment charge of $270 million related to GM’s investment in Ally Financial common stock; |
• | Charges of $150 million related to the settlement of existing Delphi obligations upon consummation of the Delphi Master Disposition Agreement and GM’s agreement to fund the wind-down costs of certain Delphi facilities; and |
• | Loss on extinguishment of debt of $101 million related to the repayment of secured long-term debt of $400 million (in connection with the purchase of the remaining noncontrolling interest in CAMI Automotive, Inc.). |
2
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor | Predecessor | |||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||
Production Volume (units in thousands)(a) | ||||||||||
GMNA – Cars | 279 | 523 | 170 | 287 | ||||||
GMNA – Trucks | 452 | 876 | 225 | 480 | ||||||
Total GMNA | 731 | 1,399 | 395 | 767 | ||||||
GME | 331 | 636 | 315 | 579 | ||||||
GMIO(b)(c) | 1,195 | 2,307 | 828 | 1,523 | ||||||
Total Worldwide | 2,257 | 4,342 | 1,538 | 2,869 | ||||||
(a) | Production volume represents the number of vehicles manufactured by GM’s and Old GM’s assembly facilities and also includes vehicles produced by certain joint ventures. |
(b) | Includes Shanghai General Motors Co., Ltd. (SGM), SAIC-GM Wuling Automobile Co., Ltd. (SGMW), FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM) joint venture production in China and SAIC GM Investment Ltd. (HKJV) joint venture production in India. |
(c) | The joint venture agreements with SGMW (34%) and FAW-GM (50%) allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture production volume in China. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income (loss), net of tax. |
3
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor | Predecessor | |||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||
Vehicle Sales (units in thousands)(a)(b)(c) | ||||||||||
United States | ||||||||||
Chevrolet – Cars | 192 | 348 | 148 | 241 | ||||||
Chevrolet – Trucks | 252 | 434 | 202 | 356 | ||||||
Cadillac | 35 | 65 | 25 | 49 | ||||||
Buick | 38 | 70 | 27 | 47 | ||||||
GMC | 83 | 152 | 64 | 118 | ||||||
Other | 3 | 11 | 76 | 143 | ||||||
Total United States | 603 | 1,081 | 541 | 954 | ||||||
Canada, Mexico and Other | 113 | 199 | 115 | 203 | ||||||
Total GMNA(d) | 716 | 1,280 | 657 | 1,157 | ||||||
GME | ||||||||||
Opel/Vauxhall | 314 | 608 | 348 | 645 | ||||||
Chevrolet | 127 | 232 | 117 | 216 | ||||||
Other | 1 | 5 | 9 | 20 | ||||||
Total GME(e) | 442 | 846 | 474 | 881 | ||||||
GMIO | ||||||||||
Chevrolet | 441 | 898 | 347 | 671 | ||||||
Buick | 132 | 254 | 114 | 196 | ||||||
GM Daewoo | 32 | 60 | 28 | 47 | ||||||
Holden | 37 | 73 | 30 | 59 | ||||||
Wuling | 303 | 637 | 262 | 493 | ||||||
FAW-GM | 22 | 50 | — | — | ||||||
Cadillac | 5 | 10 | 3 | 5 | ||||||
Other | 23 | 45 | 23 | 45 | ||||||
Total GMIO(e)(f)(g) | 995 | 2,026 | 807 | 1,517 | ||||||
Total Worldwide | 2,153 | 4,152 | 1,938 | 3,555 | ||||||
(a) | Includes HUMMER, Saturn and Pontiac vehicle sales data. |
(b) | Includes Saab vehicle sales data through February 2010. |
(c) | Vehicle sales data may include rounding differences. |
(d) | Vehicle sales represent sales to the ultimate customer. |
(e) | Vehicle sales primarily represent estimated sales to the ultimate customer. |
(f) | Includes SGM, SGMW and FAW-GM joint venture sales in China and HKJV joint venture sales in India. |
(g) | The joint venture agreements with SGMW (34%) and FAW-GM (50%) allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as a part of global market share. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income (loss), net of tax. |
4
General Motors Company and Subsidiaries
Supplemental Material
(Unaudited)
Successor | Predecessor | |||||||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||||||
Market Share(a)(b) | ||||||||||||||
United States – Cars | 15.4 | % | 15.1 | % | 17.5 | % | 16.5 | % | ||||||
United States – Trucks | 23.2 | % | 22.6 | % | 23.5 | % | 22.5 | % | ||||||
Total United States | 19.4 | % | 18.9 | % | 20.5 | % | 19.5 | % | ||||||
Total GMNA(c) | 18.7 | % | 18.3 | % | 19.9 | % | 19.0 | % | ||||||
Total GME(d) | 8.8 | % | 8.6 | % | 9.2 | % | 9.1 | % | ||||||
Total GMIO(d)(e)(f) | 10.3 | % | 10.3 | % | 10.4 | % | 10.2 | % | ||||||
Total Worldwide | 11.6 | % | 11.4 | % | 11.9 | % | 11.6 | % | ||||||
U.S. Retail/Fleet Mix | ||||||||||||||
% Fleet Sales – Cars | 42.4 | % | 41.6 | % | 29.7 | % | 25.6 | % | ||||||
% Fleet Sales – Trucks | 27.8 | % | 26.4 | % | 28.4 | % | 22.5 | % | ||||||
Total Vehicles | 33.5 | % | 32.3 | % | 28.9 | % | 23.8 | % | ||||||
GMNA Capacity Utilization(g) | 92.9 | % | 88.8 | % | 39.4 | % | 38.5 | % |
(a) | Includes HUMMER, Saturn and Pontiac vehicle sales data. |
(b) | Includes Saab vehicle sales data through February 2010. |
(c) | Vehicle sales represent sales to the ultimate customer. |
(d) | Vehicle sales primarily represent estimated sales to the ultimate customer. |
(e) | Includes SGM, SGMW, FAW-GM joint venture sales in China and HKJV joint venture sales in India. |
(f) | The joint venture agreements with SGMW (34%) and FAW-GM (50%) allows for significant rights as a member as well as the contractual right to report SGMW and FAW-GM joint venture vehicle sales in China as part of global market share. These entities are not consolidated for financial reporting purposes. Income and losses related to these entities are recorded in Equity income (loss), net of tax. |
(g) | Two shift rated, annualized. |
Successor | ||||
June 30, 2010 | December 31, 2009 | |||
Worldwide Employment (thousands) | ||||
GMNA | 105 | 103 | ||
GME(a) | 42 | 50 | ||
GMIO(b) | 61 | 62 | ||
Total Worldwide | 208 | 215 | ||
United States – Salaried | 26 | 26 | ||
United States – Hourly | 53 | 51 |
(a) | Decrease in GME primarily relates to the sale of Saab, employees located within Russia and Uzbekistan transferred from the GME segment to the GMIO segment and restructuring initiatives in Germany, Spain, and the United Kingdom. |
(b) | Decrease in GMIO reflects a reduction of 2,400 employees due to the sale of the India Operations. |
Successor | Predecessor | |||||||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||||||
Worldwide Payroll (billions) | $ | 3.1 | $ | 6.1 | $ | 2.9 | $ | 5.9 |
5
General Motors Company and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
Successor | Predecessor | |||||||||||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | |||||||||||||||
Net sales and revenue | $ | 33,174 | $ | 64,650 | $ | 23,047 | $ | 45,478 | ||||||||||
Costs and expenses | ||||||||||||||||||
Cost of sales | 28,759 | 56,350 | 29,384 | 53,995 | ||||||||||||||
Selling, general and administrative expense | 2,623 | 5,307 | 2,936 | 5,433 | ||||||||||||||
Other expenses, net | 39 | 85 | 169 | 1,154 | ||||||||||||||
Total costs and expenses | 31,421 | 61,742 | 32,489 | 60,582 | ||||||||||||||
Operating income (loss) | 1,753 | 2,908 | (9,442 | ) | (15,104 | ) | ||||||||||||
Equity in income of and disposition of interest in Ally Financial | — | — | 1,880 | 1,380 | ||||||||||||||
Interest expense | (250 | ) | (587 | ) | (3,375 | ) | (4,605 | ) | ||||||||||
Interest income and other non-operating income, net | 59 | 544 | 408 | 833 | ||||||||||||||
Loss on extinguishment of debt | — | (1 | ) | (1,994 | ) | (1,088 | ) | |||||||||||
Reorganization expenses, net | — | — | (1,157 | ) | (1,157 | ) | ||||||||||||
Income (loss) before income taxes and equity income | 1,562 | 2,864 | (13,680 | ) | (19,741 | ) | ||||||||||||
Income tax expense (benefit) | 361 | 870 | (445 | ) | (559 | ) | ||||||||||||
Equity income (loss), net of tax | 411 | 814 | (2 | ) | 46 | |||||||||||||
Net income (loss) | 1,612 | 2,808 | (13,237 | ) | (19,136 | ) | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 76 | 204 | (332 | ) | (256 | ) | ||||||||||||
Net income (loss) attributable to stockholders | 1,536 | 2,604 | (12,905 | ) | (18,880 | ) | ||||||||||||
Less: Cumulative dividends on preferred stock | 202 | 405 | — | — | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 1,334 | $ | 2,199 | $ | (12,905 | ) | $ | (18,880 | ) | ||||||||
Earnings (loss) per share | ||||||||||||||||||
Basic | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 2.67 | $ | 4.40 | $ | (21.12 | ) | $ | (30.91 | ) | ||||||||
Weighted-average common shares outstanding | 500 | 500 | 611 | 611 | ||||||||||||||
Diluted | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 2.55 | $ | 4.21 | $ | (21.12 | ) | $ | (30.91 | ) | ||||||||
Weighted-average common shares outstanding | 522 | 522 | 611 | 611 |
6
General Motors Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions, except share amounts)
(Unaudited)
Successor | ||||||||
June 30, 2010 | December 31, 2009 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 26,773 | $ | 22,679 | ||||
Marketable securities | 4,761 | 134 | ||||||
Total cash, cash equivalents and marketable securities | 31,534 | 22,813 | ||||||
Restricted cash and marketable securities | 1,393 | 13,917 | ||||||
Accounts and notes receivable (net of allowance of $272 and $250) | 8,662 | 7,518 | ||||||
Inventories | 11,533 | 10,107 | ||||||
Assets held for sale | — | 388 | ||||||
Equipment on operating leases, net | 3,008 | 2,727 | ||||||
Other current assets and deferred income taxes | 1,677 | 1,777 | ||||||
Total current assets | 57,807 | 59,247 | ||||||
Non-Current Assets | ||||||||
Equity in net assets of nonconsolidated affiliates | 8,296 | 7,936 | ||||||
Assets held for sale | — | 530 | ||||||
Property, net | 18,106 | 18,687 | ||||||
Goodwill | 30,186 | 30,672 | ||||||
Intangible assets, net | 12,820 | 14,547 | ||||||
Other assets | 4,684 | 4,676 | ||||||
Total non-current assets | 74,092 | 77,048 | ||||||
Total Assets | $ | 131,899 | $ | 136,295 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable (principally trade) | $ | 20,755 | $ | 18,725 | ||||
Short-term debt and current portion of long-term debt (including debt at GM Daewoo of $1,021 at June 30, 2010) | 5,524 | 10,221 | ||||||
Liabilities held for sale | — | 355 | ||||||
Accrued expenses (including derivative liabilities at GM Daewoo of $352 at June 30, 2010) | 24,068 | 23,134 | ||||||
Total current liabilities | 50,347 | 52,435 | ||||||
Non-Current Liabilities | ||||||||
Long-term debt (including debt at GM Daewoo of $722 at June 30, 2010; Note 10) | 2,637 | 5,562 | ||||||
Liabilities held for sale | — | 270 | ||||||
Postretirement benefits other than pensions | 8,649 | 8,708 | ||||||
Pensions | 25,990 | 27,086 | ||||||
Other liabilities and deferred income taxes | 13,377 | 13,279 | ||||||
Total non-current liabilities | 50,653 | 54,905 | ||||||
Total Liabilities | 101,000 | 107,340 | ||||||
Commitments and contingencies | ||||||||
Preferred stock, $0.01 par value (1,000,000,000 shares authorized, 360,000,000 shares issued and outstanding (each with a $25.00 liquidation preference) at June 30, 2010 and December 31, 2009) | 6,998 | 6,998 | ||||||
Equity | ||||||||
Common stock, $0.01 par value (2,500,000,000 shares authorized, 500,000,000 shares issued and outstanding at June 30, 2010 and December 31, 2009) | 5 | 5 | ||||||
Capital surplus (principally additional paid-in capital) | 24,052 | 24,050 | ||||||
Accumulated deficit | (2,195 | ) | (4,394 | ) | ||||
Accumulated other comprehensive income | 1,153 | 1,588 | ||||||
Total stockholders’ equity | 23,015 | 21,249 | ||||||
Noncontrolling interests | 886 | 708 | ||||||
Total equity | 23,901 | 21,957 | ||||||
Total Liabilities and Equity | $ | 131,899 | $ | 136,295 | ||||
[GRAPHIC APPEARS HERE]
7