Exhibit 99.1
AMERICREDIT REPORTS SECOND QUARTER OPERATING RESULTS
| • | 2nd Quarter earnings of $46 million, $0.33 per share |
| • | Quarterly loan originations of $379 million |
| • | Total available liquidity of $750 million |
FORT WORTH, TEXAS January 27, 2010 – AMERICREDIT CORP. (NYSE: ACF) today announced net income of $46 million, or $0.33 per share, for its fiscal second quarter ended December 31, 2009. The Company reported a net loss of $35 million, or $0.29 per share, for the same period a year earlier. For the six months ended December 31, 2009, AmeriCredit reported net income of $72 million, or $0.52 per share, versus a net loss of $40 million, or $0.34 per share, for the six months ended December 31, 2008. Net loss for the quarter and six months ended December 31, 2008, were revised, from a net loss of $26 million, or $0.21 per share, and $27 million, or $0.23 per share, respectively, to reflect the retrospective adoption, on July 1, 2009, of a new accounting standard that changes the accounting for convertible bonds.
Originations were $379 million for the quarter ended December 31, 2009, compared to $321 million for the same quarter last fiscal year. Originations for the six months ended December 31, 2009, were $608 million, compared to $900 million for the same period a year earlier. Finance receivables totaled $9.3 billion at December 31, 2009, compared to $13.0 billion at December 31, 2008.
Annualized net charge-offs were 8.9% of average finance receivables for the quarter ended December 31, 2009, compared to 9.5% for the quarter ended December 31, 2008. For the six months ended December 31, 2009, annualized net charge-offs were 8.6%, compared to 8.3% for the same period last year.
Finance receivables 31-to-60 days delinquent were 7.7% of the portfolio at December 31, 2009, compared to 7.8% at December 31, 2008. Accounts more than 60 days delinquent were 3.7% of the portfolio at December 31, 2009, compared to 4.2% a year ago.
The allowance for loan losses as a percentage of finance receivables was 7.7% at December 31, 2009, compared to 8.2% at September 30, 2009 and 7.1% at December 31, 2008.
The Company had total available liquidity of $750 million at December 31, 2009, consisting of $320 million of unrestricted cash and approximately $430 million of borrowing capacity on unpledged eligible receivables.
“We had an outstanding December quarter with year-over-year improvements in all key aspects of our business – originations, credit performance and earnings,” said President and Chief Executive Officer Dan Berce. “While we remain cautious about the economic recovery, our strong balance sheet and improving credit trends combined with a more favorable capital markets environment, position us well to move forward and continue to rebuild our business in 2010.”
AmeriCredit will host a conference call for analysts and investors today at 5:30 p.m. Eastern time. For a live Internet broadcast of this conference call, please go to the Company’s Web site to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About AmeriCredit
AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers across the United States. AmeriCredit has approximately 800,000 customers and $9 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit www.americredit.com.
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, 2009. 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.
AmeriCredit Corp.
Consolidated Statements of Operations
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 (Revised) | 2009 | 2008 (Revised) | |||||||||||||
Revenue: | ||||||||||||||||
Finance charge income | $ | 363,100 | $ | 497,560 | $ | 752,896 | $ | 1,031,533 | ||||||||
Other income | 23,655 | 30,626 | 47,143 | 61,702 | ||||||||||||
Gain on retirement of debt | — | 30,411 | — | 31,405 | ||||||||||||
| 386,755 | 558,597 | 800,039 | 1,124,640 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Operating expenses | 76,410 | 84,344 | 145,272 | 168,599 | ||||||||||||
Leased vehicles expenses | 10,221 | 12,157 | 20,331 | 23,071 | ||||||||||||
Provision for loan losses | 106,198 | 288,022 | 264,149 | 562,887 | ||||||||||||
Interest expense | 121,760 | 224,775 | 251,908 | 425,429 | ||||||||||||
Restructuring charges | (49 | ) | 2,104 | (86 | ) | 2,655 | ||||||||||
| 314,540 | 611,402 | 681,574 | 1,182,641 | |||||||||||||
Income (loss) before income taxes | 72,215 | (52,805 | ) | 118,465 | (58,001 | ) | ||||||||||
Income tax provision (benefit) | 26,186 | (17,803 | ) | 46,675 | (17,725 | ) | ||||||||||
Net income (loss) | $ | 46,029 | $ | (35,002 | ) | $ | 71,790 | $ | (40,276 | ) | ||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.34 | $ | (0.29 | ) | $ | 0.54 | $ | (0.34 | ) | ||||||
Diluted | $ | 0.33 | $ | (0.29 | ) | $ | 0.52 | $ | (0.34 | ) | ||||||
Weighted average shares | 133,492,069 | 120,106,666 | 133,361,014 | 118,189,273 | ||||||||||||
Weighted average shares and assumed incremental shares | 137,630,694 | 120,106,666 | 136,857,076 | 118,189,273 | ||||||||||||
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
| December 31, 2009 | June 30, 2009 (Revised) | December 31, 2008 (Revised) | |||||||
Cash and cash equivalents | $ | 319,644 | $ | 193,287 | $ | 166,690 | |||
Finance receivables, net | 8,587,917 | 10,037,329 | 12,076,156 | ||||||
Restricted cash – securitization notes payable | 850,212 | 851,606 | 883,734 | ||||||
Restricted cash – credit facilities | 128,199 | 195,079 | 164,154 | ||||||
Property and equipment, net | 40,270 | 44,195 | 49,889 | ||||||
Leased vehicles, net | 131,326 | 156,387 | 184,673 | ||||||
Deferred income taxes | 19,186 | 75,782 | 265,650 | ||||||
Income tax receivable | 31,580 | 197,579 | 72,984 | ||||||
Other assets | 181,170 | 207,083 | 256,369 | ||||||
Total assets | $ | 10,289,504 | $ | 11,958,327 | $ | 14,120,299 | |||
Credit facilities | $ | 709,927 | $ | 1,630,133 | $ | 1,942,362 | |||
Securitization notes payable | 6,590,644 | 7,426,687 | 9,253,487 | ||||||
Senior notes | 91,620 | 91,620 | 91,620 | ||||||
Convertible debt | 403,105 | 392,514 | 423,002 | ||||||
Accrued taxes and expenses | 159,874 | 157,640 | 202,103 | ||||||
Interest rate swap agreements | 98,513 | 131,885 | 162,935 | ||||||
Other liabilities | 17,429 | 20,540 | 11,378 | ||||||
Total liabilities | 8,071,112 | 9,851,019 | 12,086,887 | ||||||
Shareholders’ equity (outstanding common shares of 133,857,728, 133,171,366, and 131,634,989, respectively) | 2,218,392 | 2,107,308 | 2,033,412 | ||||||
Total liabilities and shareholders’ equity | $ | 10,289,504 | $ | 11,958,327 | $ | 14,120,299 | |||
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 (Revised) | 2009 | 2008 (Revised) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 46,029 | $ | (35,002 | ) | $ | 71,790 | $ | (40,276 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 20,822 | 31,909 | 43,646 | 57,794 | ||||||||||||
Accretion and amortization of fees | 1,637 | 5,029 | 4,012 | 12,024 | ||||||||||||
Provision for loan losses | 106,198 | 288,022 | 264,149 | 562,887 | ||||||||||||
Deferred income taxes | 29,060 | 43,084 | 44,577 | 37,922 | ||||||||||||
Non-cash interest on convertible debt | 5,342 | 6,009 | 10,591 | 11,617 | ||||||||||||
Stock-based compensation expense | 3,938 | 3,653 | 6,906 | 7,547 | ||||||||||||
Amortization of warrants | — | 28,586 | 1,968 | 40,934 | ||||||||||||
Gain on retirement of debt | — | (31,166 | ) | — | (32,160 | ) | ||||||||||
Other | (1,475 | ) | 2,877 | (8,292 | ) | 6,547 | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Income tax receivable | 52,810 | (51,152 | ) | 166,017 | (50,087 | ) | ||||||||||
Other assets | 1,896 | (10,570 | ) | 3,201 | (10,218 | ) | ||||||||||
Accrued taxes and expenses | 3,083 | (15,009 | ) | (3,574 | ) | (8,049 | ) | |||||||||
Net cash provided by operating activities | 269,340 | 266,270 | 604,991 | 596,482 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of receivables | (367,738 | ) | (326,908 | ) | (585,658 | ) | (913,555 | ) | ||||||||
Principal collections and recoveries on receivables | 868,495 | 1,024,477 | 1,780,616 | 2,237,921 | ||||||||||||
Net change in restricted cash and other | 70,383 | 124,254 | 83,718 | 161,136 | ||||||||||||
Net cash provided by investing activities | 571,140 | 821,823 | 1,278,676 | 1,485,502 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Net change in credit facilities | (309,141 | ) | (1,034,442 | ) | (920,206 | ) | (967,429 | ) | ||||||||
Net change in securitization notes payable | (677,185 | ) | (27,178 | ) | (838,135 | ) | (1,158,040 | ) | ||||||||
Proceeds from issuance of common stock | 5,643 | 1,253 | 6,779 | 1,267 | ||||||||||||
Retirement of convertible debt | — | (100,425 | ) | — | (214,473 | ) | ||||||||||
Other net changes | (2,273 | ) | (6,028 | ) | (5,096 | ) | (12,376 | ) | ||||||||
Net cash used by financing activities | (982,956 | ) | (1,166,820 | ) | (1,756,658 | ) | (2,351,051 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | (142,476 | ) | (78,727 | ) | 127,009 | (269,067 | ) | |||||||||
Effect of Canadian exchange rate changes on cash and cash equivalents | 14 | 1,665 | (652 | ) | 2,264 | |||||||||||
Cash and cash equivalents at beginning of period | 462,106 | 243,752 | 193,287 | 433,493 | ||||||||||||
Cash and cash equivalents at end of period | $ | 319,644 | $ | 166,690 | $ | 319,644 | $ | 166,690 | ||||||||
Other Financial Data
(Unaudited, Dollars in Thousands)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
Origination volume | $ | 378,595 | $ | 320,830 | $ | 607,668 | $ | 900,120 | ||||
Loans securitized | $ | 294,490 | $ | 1,289,082 | $ | 1,275,546 | $ | 1,289,082 | ||||
Average finance receivables | $ | 9,641,769 | $ | 13,547,116 | $ | 10,062,216 | $ | 14,045,482 | ||||
| December 31, 2009 | June 30, 2009 | December 31, 2008 | ||||||||||
Finance receivables: | ||||||||||||
Principal | $ | 9,304,976 | $ | 10,927,969 | $ | 12,999,132 | ||||||
Allowance for loan losses and nonaccretable acquisition fees | (717,059 | ) | (890,640 | ) | (922,976 | ) | ||||||
| $ | 8,587,917 | $ | 10,037,329 | $ | 12,076,156 | |||||||
Allowance as a percent of ending finance receivables | 7.7 | % | 8.2 | % | 7.1 | % | ||||||
| December 31, 2009 | June 30, 2009 | December 31, 2008 | ||||||||||
Loan delinquency as a percent of ending finance receivables: | ||||||||||||
31 - 60 days | 7.7 | % | 6.9 | % | 7.8 | % | ||||||
Greater than 60 days | 3.7 | 3.5 | 4.2 | |||||||||
Total | 11.4 | % | 10.4 | % | 12.0 | % | ||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Contracts receiving a payment deferral as an average quarterly percentage of average finance receivables | 8.5 | % | 8.2 | % | 8.2 | % | 7.7 | % | ||||||||
Net charge-offs | $ | 215,097 | $ | 325,165 | $ | 437,730 | $ | 591,024 | ||||||||
Annualized net charge-offs as a percent of average finance receivables | 8.9 | % | 9.5 | % | 8.6 | % | 8.3 | % | ||||||||
Net recoveries as a percent of gross repossession charge-offs | 42.2 | % | 37.1 | % | 42.5 | % | 39.3 | % | ||||||||
Components of net margin:
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 (Revised) | 2009 | 2008 (Revised) | |||||||||||||
Finance charge income | $ | 363,100 | $ | 497,560 | $ | 752,896 | $ | 1,031,533 | ||||||||
Other income | 23,655 | 30,626 | 47,143 | 61,702 | ||||||||||||
Interest expense | (121,760 | ) | (224,775 | ) | (251,908 | ) | (425,429 | ) | ||||||||
Net margin | $ | 264,995 | $ | 303,411 | $ | 548,131 | $ | 667,806 | ||||||||
Annualized net margin as a percent of average finance receivables: |
| |||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 (Revised) | 2009 | 2008 (Revised) | |||||||||||||
Finance charge income | 14.9 | % | 14.6 | % | 14.8 | % | 14.5 | % | ||||||||
Other income | 1.0 | 0.9 | 0.9 | 0.9 | ||||||||||||
Interest expense | (5.0 | ) | (6.6 | ) | (4.9 | ) | (6.0 | ) | ||||||||
Net margin | 10.9 | % | 8.9 | % | 10.8 | % | 9.4 | % | ||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Operating expenses | $ | 76,410 | $ | 84,344 | $ | 145,272 | $ | 168,599 | ||||||||
Annualized operating expenses as a percent of average finance receivables | 3.1 | % | 2.5 | % | 2.9 | % | 2.4 | % | ||||||||
Contact:
Caitlin DeYoung
(817) 302-7394