Exhibit 99.1
AmeriCredit Reports Fiscal Third
Quarter 2004 EPS of $0.40
FORT WORTH, Texas--(BUSINESS WIRE)--April 22, 2004--AmeriCredit
Corp. (NYSE:ACF):
-- Executing New Growth Plan
-- Improved Credit Results
-- Initiating Fiscal Year 2005 Earnings Guidance
AmeriCredit Corp. (NYSE:ACF) today announced net income of $63.8
million, or $0.40 per share, for its fiscal third quarter ended March
31, 2004. AmeriCredit reported net income of $18.9 million, or $0.12
per share, for the same period a year earlier. For the nine months
ended March 31, 2004, AmeriCredit reported net income of $144.3
million, or $0.91 per share, compared to earnings of $38.3 million, or
$0.29 per share, for the nine months ended March 31, 2003.
Automobile loan purchases increased to $953.8 million for the
third quarter of fiscal year 2004, compared to $700.0 million in the
December 2003 quarter as the Company initiated its new growth plan.
This plan targets loan origination levels of $1 billion per quarter by
the end of this fiscal year. Managed auto receivables totaled $12.4
billion at March 31, 2004.
Managed auto receivables 31-to-60 days delinquent were 5.5% of the
portfolio at March 31, 2004, compared to 7.3% at March 31, 2003, and
7.5% at December 31, 2003. Accounts more than 60 days delinquent were
2.0% of the portfolio at March 31, 2004, compared to 2.7% at March 31,
2003, and 2.9% at December 31, 2003.
Annualized net charge-offs totaled 6.6% of average managed auto
receivables for the March 2004 quarter, compared to annualized net
charge-offs of 7.6% for the March 2003 quarter and 7.3% for the
December 2003 quarter (excluding the effect of the change in
repossession charge-off policy). The Company forecasts that quarterly
annualized charge-offs will be in the range of 5.5% to 6.5%,
fluctuating seasonally, during the remainder of calendar year 2004.
"We had a very good March quarter," said AmeriCredit Chief
Executive Officer Clifton Morris. "Our loan volume under the Company's
new growth plan was right on target, and credit results were better
than we expected. When combined, the result was a significant increase
in net income for the quarter."
AmeriCredit's unrestricted cash balance totaled $509.7 million at
March 31, 2004, compared to $524.8 million at December 31, 2003.
Subsequent to March 31, 2004, the Company received $137.0 million from
its old FSA-insured securitization program and retired its 9 7/8%
Senior Notes due 2006 for an aggregate redemption price of $178.0
million.
Regulation FD
Pursuant to Regulation FD, the Company provides its expectations
regarding future business trends to the public via a press release or
8-K filing. The Company anticipates some risks and uncertainties with
its business. The forecasts for calendar year 2004 and fiscal year
2005 incorporate, but are not limited to, the following assumptions:
-- Approximately $1 billion in quarterly loan originations by
June 30, 2004, growing an average of 10% to 15% annually
thereafter;
-- A charge of approximately $12 million pre-tax in the June
quarter for facility closing costs related to the
previously-announced closing of the collection center in
Jacksonville, Florida, and other consolidation costs; and
-- Implementation of Statement of Position 03-3, released in
December 2003, which will result in a change in the way the
Company accounts for the dealer acquisition fee collected when
loans are purchased, effective July 1, 2004. This fee is
currently nonaccretable and is used to cover inherent losses,
thereby reducing the provision for loan losses. Beginning with
loans originated in fiscal year 2005, this fee will be an
accretable discount and recognized as a yield enhancement over
time. This change results in a timing difference only for the
recognition of earnings and does not affect cash flow.
Net income and EPS forecasts
12 mos. ending 12 mos. ending
Net income ($ millions) 12/31/04 6/30/05
-------------- --------------
Previous $150 - $190 n/a
New $190 - $210 $180 - $200
Earnings per share
Previous $0.93 - $1.17 n/a
New $1.15 - $1.27 $1.09 - $1.21
"Great fundamentals drove our results for the quarter and position
us well for the future. While the accounting change will impact the
timing of future earnings, it will not affect cash flow or the way we
operate the business. With our strong balance sheet and significant
cash balances, we are investing in our business by growing loan volume
and targeting high risk-adjusted returns in order to create value over
the long term," said AmeriCredit President Dan Berce.
AmeriCredit will host a conference call for analysts and investors
today at 5:30 P.M. Eastern Daylight 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 middle-market auto
finance company. Using its branch network and strategic alliances with
auto groups and banks, the Company purchases retail installment
contracts entered into by auto dealers with consumers who are
typically unable to obtain financing from traditional sources.
AmeriCredit has more than one million customers and more than $12
billion in managed 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 period ended June 30, 2003. Such risks include - but are not
limited to - variable economic conditions, adverse portfolio
performance, volatile wholesale values, reliance on warehouse
financing and capital markets, the ability to continue to securitize
its loan portfolio, the continued availability of credit enhancement
for its securitization transactions on acceptable terms, fluctuating
interest rates, increased competition, regulatory changes 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 Company management. Actual events
or results may differ materially.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- -------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenue:
Finance charge
income $235,473 $185,857 $672,259 $410,429
Gain on sale of
receivables - - - 132,084
Servicing income 69,428 103,722 186,379 225,566
Other income 8,444 5,230 24,436 15,863
------------ ------------ ------------ ------------
313,345 294,809 883,074 783,942
------------ ------------ ------------ ------------
Costs and expenses:
Operating
expenses 88,566 82,347 257,890 300,516
Provision for
loan losses 63,928 77,109 189,527 229,785
Interest expense 55,865 51,550 200,896 131,453
Restructuring
charges 2,481 53,071 2,949 59,970
------------ ------------ ------------ ------------
210,840 264,077 651,262 721,724
------------ ------------ ------------ ------------
Income before
income taxes 102,505 30,732 231,812 62,218
Income tax
provision 38,695 11,832 87,509 23,954
------------ ------------ ------------ ------------
Net income $63,810 $18,900 $144,303 $38,264
============ ============ ============ ============
Earnings per share:
Basic $0.41 $0.12 $0.92 $0.29
============ ============ ============ ============
Diluted $0.40 $0.12 $0.91 $0.29
============ ============ ============ ============
Weighted average
shares 157,153,633 155,492,651 156,739,014 131,268,991
============ ============ ============ ============
Weighted average
shares and
assumed
incremental
shares 161,134,771 155,494,768 158,903,097 131,677,520
============ ============ ============ ============
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, December 31, June 30,
2004 2003 2003
------------- ------------- -----------
Cash and cash equivalents $509,690 $524,765 $316,921
Finance receivables, net 6,032,838 5,618,639 4,996,616
Interest-only receivables
from Trusts 145,205 168,359 213,084
Investments in Trust
receivables 576,855 644,979 760,528
Restricted cash - gain on
sale Trusts 401,129 455,468 387,006
Restricted cash -
securitization notes payable 429,954 338,982 229,917
Restricted cash - warehouse
credit facilities 58,974 65,335 764,832
Property and equipment, net 106,121 112,366 123,713
Other assets 300,240 175,957 315,412
------------- ------------- -----------
Total assets $8,561,006 $8,104,850 $8,108,029
============= ============= ===========
Warehouse credit facilities $767,486 $705,235 $1,272,438
Whole loan purchase facility - - 902,873
Securitization notes payable 4,761,366 4,556,267 3,281,370
Senior notes 334,607 358,611 378,432
Convertible debt 200,000 200,000 -
Other notes payable 24,537 28,212 34,599
Funding payable 166,600 25,857 25,562
Accrued taxes and expenses 152,149 125,249 162,433
Derivative financial
instruments 38,973 40,060 66,531
Deferred income taxes 81,290 107,948 103,162
------------- ------------- -----------
Total liabilities 6,527,008 6,147,439 6,227,400
Shareholders' equity 2,033,998 1,957,411 1,880,629
------------- ------------- -----------
Total liabilities and
shareholders' equity $8,561,006 $8,104,850 $8,108,029
============= ============= ===========
Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- -----------------------
2004 2003 2004 2003
--------- ----------- ----------- -----------
Cash flows from
operating activities:
Net income $63,810 $18,900 $144,303 $38,264
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 11,777 13,817 66,052 36,353
Provision for loan
losses 63,928 77,109 189,527 229,785
Deferred income
taxes (27,783) 20,778 (31,015) (62,140)
Accretion of present
value discount (26,172) (35,408) (67,683) (85,370)
Impairment of credit
enhancement assets 1,795 6,820 33,364 95,778
Non-cash gain on
sale of receivables - - - (124,831)
Non-cash
restructuring
charges and other 4,205 36,298 5,112 42,406
Distributions from gain
on sale Trusts - net of
swap payments 170,209 33,484 248,278 144,602
Initial deposits to
credit enhancement
assets - - - (58,101)
Change in assets and
liabilities:
Other assets (134,763) 19,935 (36,158) 3,386
Accrued taxes and
expenses 24,627 22,949 (7,931) (7,614)
Purchases, principal
collections and sales
of receivables held for
sale - - - 1,922,076
--------- ----------- ----------- -----------
Net cash provided by
operating activities 151,633 214,682 543,849 2,174,594
--------- ----------- ----------- -----------
Cash flows from
investing activities:
Purchases of receivables (935,773) (1,418,517) (2,654,814) (5,223,167)
Principal collections
and recoveries on
receivables 598,860 292,104 1,567,268 435,976
Purchases of property
and equipment (415) (36,565) (2,552) (38,898)
Net change in restricted
cash and other (75,473) (238,534) 563,342 (668,273)
--------- ----------- ----------- -----------
Net cash used by
investing activities (412,801) (1,401,512) (526,756) (5,494,362)
--------- ----------- ----------- -----------
Cash flows from
financing activities:
Net change in warehouse
credit facilities 62,251 513,351 (504,952) 511,886
Net change in whole loan
purchase facility - 875,000 (905,000) 875,000
Net change in
securitization notes 205,962 (126,588) 1,477,531 1,665,871
Net change in senior
notes and other (29,312) (15,364) (74,747) (67,204)
Proceeds from issuance
of common stock and
convertible debt 7,140 (1,569) 182,731 479,748
--------- ----------- ----------- -----------
Net cash provided by
financing activities 246,041 1,244,830 175,563 3,465,301
--------- ----------- ----------- -----------
Net (decrease) increase
in cash and cash
equivalents (15,127) 58,000 192,656 145,533
Effect of Canadian
exchange rate changes
on cash and cash
equivalents 52 350 113 251
Cash and cash
equivalents at
beginning of period 524,765 179,783 316,921 92,349
--------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period $509,690 $238,133 $509,690 $238,133
========= =========== =========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- -------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Loan originations $953,806 $1,317,646 $2,398,923 $5,623,733
Loans securitized 833,333 - 3,155,860 4,540,193
Average on-book
receivables $6,103,563 $4,651,309 $5,819,220 $3,237,909
Average gain on
sale receivables 6,543,472 11,551,091 7,708,668 12,614,872
------------ ------------ ------------ ------------
Average managed
receivables $12,647,035 $16,202,400 $13,527,888 $15,852,781
============ ============ ============ ============
March 31, December 31, March 31,
2004 2003 2003
------------ ------------ ------------
On-book
receivables $6,413,435 $5,972,437 $5,028,731
Gain on sale
receivables 5,943,195 7,015,902 10,820,142
------------ ------------ ------------
Managed
receivables $12,356,630 $12,988,339 $15,848,873
============ ============ ============
March 31, December 31, March 31,
2004 2003 2003
------------ ------------ ------------
On-book
receivables:
Principal $6,413,435 $5,972,437 $5,028,731
Allowance for
loan losses
and
nonaccretable
acquisition
fees (380,597) (353,798) (285,872)
------------ ------------ ------------
$6,032,838 $5,618,639 $4,742,859
============ ============ ============
5.9% 5.9% 5.7%
============ ============ ============
(% of ending
managed March 31, December 31, March 31,
receivables) 2004 2003 2003
----------- ------------ -------------
Loan delinquency:
On-book:
31 - 60 days 3.7% 5.0% 3.8%
Greater than
60 days 1.3 1.8 1.4
----------- ------------ -------------
Total 5.0% 6.8% 5.2%
=========== ============ =============
Gain on sale:
31 - 60 days 7.4% 9.8% 8.9%
Greater than
60 days 2.7 3.7 3.3
----------- ------------ -------------
Total 10.1% 13.5% 12.2%
=========== ============ =============
Total
portfolio:
31 - 60 days 5.5% 7.5% 7.3%
Greater than
60 days 2.0 2.9 2.7
----------- ------------ -------------
Total 7.5% 10.4% 10.0%
=========== ============ =============
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Net charge-offs: (1)
On-book $63,256 $32,696 $203,083 $64,997
Gain on sale 143,990 269,468 590,297 679,050
--------- --------- --------- ---------
$207,246 $302,164 $793,380 $744,047
========= ========= ========= =========
Net charge-offs as a percent of
average managed receivables 6.6% 7.6% 7.8% 6.3%
========= ========= ========= =========
(1) Charge-offs for the periods ended after September 30, 2003, are
not comparable to charge-offs for periods prior due to the change
in the Company's repossession charge-off policy implemented during
the quarter ended December 31, 2003.
The Company evaluates the profitability of its lending activities
based partly upon the net margin related to its managed auto loan
portfolio, including on-book and gain on sale receivables. The Company
uses this information to analyze trends in the components of the
profitability of its managed auto portfolio. Analysis of net margin on
a managed basis allows the Company to determine which origination
channels and loan products are most profitable, guides the Company in
making pricing decisions for loan products and indicates if sufficient
spread exists between the Company's revenues and cost of funds to
cover operating expenses and achieve corporate profitability
objectives. Additionally, net margin on a managed basis facilitates
comparisons of results between the Company and other finance companies
(i) that do not securitize their receivables or (ii) due to the
structure of their securitization transactions, are not required to
account for the securitization of their receivables as a sale. The
Company routinely securitizes its receivables and prior to October 1,
2002, recorded a gain on the sale of such receivables. The net margin
on a managed basis presented below assumes that all securitized
receivables have not been sold and are still on the Company's
consolidated balance sheet. Accordingly, no gain on sale or servicing
income would have been recognized. Instead, finance charges would be
recognized over the life of the securitized receivables as earned, and
interest and other costs related to the asset-backed securities would
be recognized as incurred.
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Finance charge income $529,834 $670,899 $1,683,940 $2,029,063
Other income 18,460 17,483 52,427 50,563
Interest expense (136,294) (189,069) (484,625) (586,070)
--------- --------- ----------- -----------
Net margin $412,000 $499,313 $1,251,742 $1,493,556
========= ========= =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Finance charge income 16.8% 16.8% 16.6% 17.1%
Other income 0.6 0.4 0.5 0.4
Interest expense (4.3) (4.7) (4.8) (4.9)
--------- --------- ----------- -----------
Net margin as a
percent of average
managed receivables 13.1% 12.5% 12.3% 12.6%
========= ========= =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Operating expenses $88,566 $82,347 $257,890 $300,516
Operating expenses as a
percent of average managed
receivables 2.8% 2.1% 2.5% 2.5%
Tax rate 37.75% 38.50% 37.75% 38.50%
The following is a reconciliation of finance charge income as
reflected on the Company's consolidated income statements to the
Company's managed basis finance charge income:
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Finance charge income per
consolidated income
statements $235,473 $185,857 $672,259 $410,429
Adjustments to reflect
finance charge income
earned on receivables in
gain on sale Trusts 294,361 485,042 1,011,681 1,618,634
--------- --------- ----------- -----------
Managed basis finance
charge income $529,834 $670,899 $1,683,940 $2,029,063
========= ========= =========== ===========
The following is a reconciliation of other income as reflected on
the Company's consolidated income statements to the Company's managed
basis other income:
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -----------------
2004 2003 2004 2003
---------- -------- -------- --------
Other income per consolidated
income statements $8,444 $5,230 $24,436 $15,863
Adjustments to reflect
investment income earned on
cash in gain on sale Trusts 1,979 2,221 5,883 8,559
Adjustments to reflect other
fees earned on receivables in
gain on sale Trusts 8,037 10,032 22,108 26,141
---------- -------- -------- --------
Managed basis other income $18,460 $17,483 $52,427 $50,563
========== ======== ======== ========
The following is a reconciliation of interest expense as reflected
on the Company's consolidated income statements to the Company's
managed basis interest expense:
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Interest expense per
consolidated income
statements $55,865 $51,550 $200,896 $131,453
Adjustment to reflect interest
expense incurred by gain on
sale Trusts 80,429 137,519 283,729 454,617
--------- --------- --------- ---------
Managed basis interest expense $136,294 $189,069 $484,625 $586,070
========= ========= ========= =========
CONTACT: AmeriCredit Corp., Fort Worth
Investor Relations
Kim Pulliam, 817-302-7009
or
Jason Landkamer, 817-302-7811
or
Media Relations
John Hoffmann, 817-302-7627