AmeriCredit Corp. Reports Record 4th Quarter and Year End Operating Results
4 August 2000
AmeriCredit Corp. Reports Record Fourth Quarter and Year End Operating Results
FORT WORTH, Texas - AmeriCredit Corp.| -- | 4th Quarter Earnings Per Share Up 39%, to $0.46 |
| -- | 4th Quarter Net Income Up 65%, to $37.2 Million |
| -- | Managed Portfolio Up 62% Over June 1999 |
| -- | Annualized Charge-Off Rate Declines to 3.8% |
AmeriCredit Corp. today announced record net income of $37,158,000, or $0.46 per share, for its fourth fiscal quarter ended June 30, 2000, versus earnings of $22,477,000, or $0.33 per share for the same period a year earlier. On a comparative basis, net income increased 65% and earnings per share rose 39%.
For the fiscal year ended June 30, 2000, AmeriCredit reported net income of $114,501,000, or $1.48 per share, including a charge for the closing of AmeriCredit's mortgage business in the second quarter. Excluding this charge, earnings for the fiscal year ended June 30, 2000 were $123,486,000, or $1.59 per share, versus earnings of $74,840,000, or $1.11 per share, for the previous fiscal year. On a comparative basis, excluding the charge, this represents an increase of 65% in earnings and 43% in earnings per share.
Automobile loan purchases were a record $1,260,110,000 for the fourth quarter of fiscal 2000, an increase of 42% over loan purchases of $888,902,000 for the fourth quarter of fiscal 1999. For the fiscal year ended June 30,2000, automobile loan purchases were $4,427,945,000, 54% higher than loan purchases of $2,879,796,000 for the fiscal year ended June 30, 1999. AmeriCredit's managed auto receivables totaled $6,649,981,000 at June 30, 2000, an increase of 62% since June 30, 1999. The Company had 196 branch locations in 41 states and Canada at June 30, 2000.
Annualized net charge-offs decreased to 3.8% of average managed auto receivables for the fourth quarter ended June 30, 2000, down from 4.5% for the fourth quarter of fiscal 1999. This marks the Company's 17th consecutive quarter of stable or declining charge-off levels. Net charge-offs for the fiscal year ended June 30, 2000 were 4.0%, down from 4.7% for the previous fiscal year.
Managed auto receivables more than sixty days delinquent were 2.3% of total managed auto receivables at June 30, 2000, compared to 1.8% at June 30, 1999.
AmeriCredit is the largest middle market automobile finance company in North America specializing in purchasing and servicing automobile loans. AmeriCredit maintains a Web site at www.americredit.com that contains further information on the Company.
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Time on Friday, August 4, 2000. For an 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.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Year Ended
June 30, June 30,
----------------------- -----------------------
2000 1999 2000 1999
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Revenue:
Finance charge income $ 38,644 $ 23,750 $ 124,150 $ 75,288
Gain on sale of
receivables 57,905 53,341 209,070 169,892
Servicing fee income 49,723 24,264 170,251 85,966
Other income 1,512 949 6,209 4,310
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147,784 102,304 509,680 335,456
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Costs and expenses:
Operating expenses 61,188 49,585 223,219 165,345
Provision for losses 5,130 3,040 16,359 9,629
Interest expense 21,047 13,132 69,310 38,792
Charge for closing
mortgage business 10,500
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87,365 65,757 319,388 213,766
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Income before income
taxes 60,419 36,547 190,292 121,690
Income tax provision 23,261 14,070 75,791 46,850
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Net income $ 37,158 $ 22,477 $ 114,501 $ 74,840
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Earnings per share:
Basic $ 0.49 $ 0.35 $ 1.57 $ 1.19
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Diluted $ 0.46 $ 0.33 $ 1.48 $ 1.11
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Weighted average
shares 75,840,922 63,802,626 73,038,005 63,005,746
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Weighted average
shares and assumed
incremental shares 80,840,165 68,695,877 77,613,652 67,191,235
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Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2000 2000 1999
------------ ------------ ------------
Cash and cash equivalents $ 42,916 $ 50,818 $ 21,189
Finance receivables, net 871,511 688,021 456,009
Interest-only receivables
from Trusts 229,059 223,411 191,865
Investments in Trust
receivables 341,707 300,169 195,598
Restricted cash 253,852 215,533 107,399
Other assets 123,224 107,345 91,427
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Total assets $ 1,862,269 $ 1,585,297 $ 1,063,487
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------------ ------------ ------------
Borrowings under
warehouse lines $ 487,700 $ 324,647 $ 114,659
Senior notes 375,000 375,000 375,000
Other notes payable 86,297 66,398 17,874
Other liabilities 224,693 198,567 156,224
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Total liabilities 1,173,690 964,612 663,757
Shareholders' equity 688,579 620,685 399,730
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Total liabilities and
shareholders' equity $ 1,862,269 $ 1,585,297 $ 1,063,487
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Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------- ---------------------
2000 1999 2000 1999
--------- ---------- ---------- ----------
Cash revenue
Finance charge income $ 38,644 $ 23,750 $ 124,150 $ 75,288
Cash gain on sale 10,482 3,226 22,894 12,135
Servicing fee income 37,028 22,478 126,168 73,441
Other income 1,512 949 6,209 4,310
Securitization
distributions 45,661 9,349 125,104 44,531
Changes in working capital (4,464) 14,795 3,858 30,063
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128,863 74,547 408,383 239,768
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Cash expenses
Operating expenses (55,358) (43,842) (203,862) (152,700)
Interest expense (21,047) (13,132) (69,310) (38,792)
Income taxes (17,457) (3,747) (60,403) (3,486)
Charge for closing
mortgage business -- -- (3,934) --
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(93,862) (60,721) (337,509) (194,978)
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Operating cash flow 35,001 13,826 70,874 44,790
Undistributed
securitization cash flow 24,214 35,825 101,306 64,832
Restricted cash deposits (32,250) (25,500) (120,000) (82,750)
Return of restricted cash
deposits -- -- -- 23,000
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Net cash flow $ 26,965 $ 24,151 $ 52,180 $ 49,872
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Total Cash Flow Generated
by Trusts:
Undistributed $ 24,214 $ 35,825 $ 101,306 $ 64,832
Return of restricted cash
deposits -- -- -- 23,000
Distributed 45,661 9,349 125,104 44,531
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Total $ 69,875 $ 45,174 $ 226,410 $ 132,363
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Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
--------------------- ----------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Auto lending operations
Auto loan originations $1,260,110 $ 888,902 $4,427,945 $2,879,796
Auto loans sold 1,074,999 849,999 3,999,999 2,770,000
Gain on sale of auto
loans 57,905 50,901 207,559 162,353
Gain on sale of auto
loans (% of loans sold) 5.4% 6.0% 5.2% 5.9%
Average owned
receivables $ 685,824 $ 406,583 $ 543,518 $ 320,962
Average serviced
receivables 5,629,710 3,438,215 4,791,062 2,808,501
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Average managed
receivables $6,315,534 $3,844,798 $5,334,580 $3,129,463
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June 30, 2000
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Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 891,672 $ 5,758,309 $ 6,649,981
Allowance for losses (24,374) (563,102) (587,476)
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$ 867,298 $ 5,195,207 $ 6,062,505
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Allowance for losses (%) 2.7% 9.8% 8.8%
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June 30, March 31, June 30,
2000 2000 1999
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Auto loan delinquency (%)
31 - 60 days 6.7% 6.0% 6.8%
> 60 days 2.3% 2.1% 1.8%
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9.0% 8.1% 8.6%
Repossessions 0.6% 0.8% 0.9%
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9.6% 8.9% 9.5%
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Pro Forma "Portfolio-Based" Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
-------------------- -----------------------
2000 1999 2000(2) 1999
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Finance charge, fee and
other income $311,219 $189,702 $1,048,382 $621,048
Funding costs (121,982) (69,022) (404,724) (220,958)
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Net margin 189,237 120,680 643,658 400,090
Operating expenses (61,188) (49,585) (223,219) (165,345)
Credit losses (59,372) (43,453) (214,276) (147,344)
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Pre-tax "portfolio-based"
income 68,677 27,642 206,163 87,401
Income taxes (26,441) (10,642) (79,374) (33,649)
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Net "portfolio-based"
income $ 42,236 $ 17,000 $ 126,789 $ 53,752
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Diluted
"portfolio-based"
earnings per share $ 0.52 $ 0.25 $ 1.63 $ 0.80
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Pro Forma Return on Managed Assets(1)
(Auto Business, Unaudited)
Three Months Ended Year Ended
June 30, June 30,
------------------ --------------
2000 1999 2000 1999
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Finance charge, fee and other income 19.8% 19.5% 19.6% 19.5%
Funding costs (7.8) (7.1) (7.6) (7.0)
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Net margin 12.0 12.4 12.0 12.5
Credit losses (3.8) (4.5) (4.0) (4.7)
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Risk adjusted margin 8.2 7.9 8.0 7.8
Operating expenses (3.9) (4.9) (4.1) (5.0)
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Pre-tax return on managed assets 4.3 3.0 3.9 2.8
Income taxes (1.6) (1.2) (1.5) (1.1)
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Return on managed assets 2.7% 1.8% 2.4% 1.7%
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(1) The pro forma "portfolio-based" earnings data and return on
managed assets present the Company's operating results under
the assumption that securitization transactions are financings
and no gain on sale or servicing fee income is recognized.
Instead, finance charge income and fees as well as interest
and other costs are recognized over the life of the
securitized receivables as accrued. Credit losses are recorded
as incurred. While this data does not purport to present the
Company's operating results in accordance with generally
accepted accounting principles, the Company believes such
presentation provides another measure for assessing the
Company's performance.
(2) The pro forma "portfolio-based" earnings data for the
twelve-month period ended June 30, 2000 excludes the charge
for the closing of AmeriCredit's mortgage business.
