AmeriCredit Reports Record Third Quarter Operating Results
FORT WORTH, Texas--April 11, 2001--AmeriCredit Corp.| -- | 3rd Quarter Earnings Per Share Up 71% to $0.70 |
| -- | 3rd Quarter Net Income Up 86% to $60.4 Million |
| -- | Managed Portfolio Up 53% Over March 2000 |
| -- | Annualized Charge-Off Rate Remains 3.6% |
AMERICREDIT CORP. today announced record net income of $60,430,000, or $0.70 per share, for its third fiscal quarter ended March 31, 2001, versus earnings of $32,410,000, or $0.41 per share for the same period a year earlier. On a comparative basis, earnings increased 86% and earnings per share rose 71%.
For the nine months ended March 31, 2001, AmeriCredit reported net income of $151,145,000, or $1.78 per share, versus earnings of $77,343,000, or $1.01 per share, for the nine months ended March 31, 2000. Excluding the charge for the closing of AmeriCredit's mortgage business last year, earnings for the nine months ended March 31, 2000 were $86,328,000, or $1.13 per share. On a comparative basis, excluding the charge, earnings increased 75% and earnings per share rose 58%.
Automobile loan purchases were $1,653,200,000 for the third quarter of fiscal 2001, an increase of 43% over loan purchases of $1,155,116,000 for the third quarter of fiscal 2000. AmeriCredit's managed auto receivables totaled $9,101,254,000 at March 31, 2001, an increase of 53% since March 31, 2000. The Company had 217 branch locations throughout the United States and Canada at March 31, 2001.
Annualized net charge-offs were 3.6% of average managed auto receivables for the third quarter, compared to 3.9% for the third quarter of fiscal 2000. Managed auto receivables more than sixty days delinquent were 2.3% of total managed auto receivables at March 31, 2001, compared to 2.1% at March 31, 2000.
REGULATION FD
AmeriCredit provides information to investors on its Web site at www.americredit.com including press releases, conference calls, SEC filings and other financial data.
From time to time, management makes presentations to the investment community. In response to SEC Regulation FD, AmeriCredit posts all such presentations on its Web site.
Also pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. Based on current business trends:
-- The Company projects it will originate $1.65 to $1.80 billion
in auto loans during its fourth fiscal quarter ending June 30,
2001, and $6.80 to $7.20 billion in auto loans during the
calendar year ending December 31, 2001.
-- Earnings per share are projected in a range of $0.76 to $0.78
for the quarter ending June 30, 2001, and $3.12 to $3.18 for
the calendar year ending December 31, 2001.
-- Pro forma portfolio-based earnings per share are projected in
a range between $0.75 to $0.77 for the quarter ending June 30,
2001, and $3.12 to $3.18 for the calendar year ending December
31, 2001.
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Time on Thursday, April 12, 2001. 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.
AmeriCredit Corp.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenue:
Finance charge income $ 61,017 $ 30,512 $ 158,512 $ 85,506
Gain on sale of
receivables 79,674 52,923 212,433 151,165
Servicing fee income 74,423 44,645 197,128 120,528
Other income 2,038 1,953 7,029 4,697
----------- ----------- ----------- -----------
217,152 130,033 575,102 361,896
----------- ----------- ----------- -----------
Costs and expenses:
Operating expenses 79,342 55,488 219,837 162,031
Provision for losses 8,635 3,986 21,960 11,229
Interest expense 30,915 17,858 87,541 48,263
Charge for closing
mortgage operations -- -- -- 10,500
----------- ----------- ----------- -----------
118,892 77,332 329,338 232,023
----------- ----------- ----------- -----------
Income before income
taxes 98,260 52,701 245,764 129,873
Income tax provision 37,830 20,291 94,619 52,530
----------- ----------- ----------- -----------
Net income $ 60,430 $ 32,410 $ 151,145 $ 77,343
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.75 $ 0.43 $ 1.92 $ 1.07
=========== =========== =========== ===========
Diluted $ 0.70 $ 0.41 $ 1.78 $ 1.01
=========== =========== =========== ===========
Weighted average
shares 80,079,906 74,869,550 78,520,489 72,110,495
=========== =========== =========== ===========
Weighted average
shares and assumed
incremental shares 86,709,986 79,027,907 84,817,718 76,544,943
=========== =========== =========== ===========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, December 31, June 30,
2001 2000 2000
----------- ----------- -----------
Cash and cash equivalents $ 101,511 $ 40,587 $ 42,916
Finance receivables, net 1,483,160 1,144,552 871,511
Interest-only receivables from
Trusts 271,817 237,401 229,059
Investments in Trust receivables 442,806 446,329 341,707
Restricted cash 298,721 289,364 253,852
Other assets 198,339 156,777 123,224
----------- ----------- -----------
Total assets $ 2,796,354 $ 2,315,010 $ 1,862,269
=========== =========== ===========
Borrowings under warehouse lines $ 1,148,345 $ 756,650 $ 487,700
Senior notes 375,000 375,000 375,000
Other notes payable 79,100 90,244 86,297
Other liabilities 265,239 261,196 224,693
----------- ----------- -----------
Total liabilities 1,867,684 1,483,090 1,173,690
Shareholders' equity 928,670 831,920 688,579
----------- ----------- -----------
Total liabilities and
shareholders' equity $ 2,796,354 $ 2,315,010 $ 1,862,269
=========== =========== ===========
Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Cash revenue
Finance charge income $ 61,017 $ 30,512 $ 158,512 $ 85,506
Cash gain on sale 13,495 6,840 42,708 12,412
Servicing fee income 49,180 33,422 132,353 89,140
Other income 2,038 1,953 6,362 4,697
Securitization
distributions 51,483 42,732 158,552 79,443
Changes in working
capital 1,303 6,968 16,232 8,322
----------- ----------- ----------- -----------
178,516 122,427 514,719 279,520
----------- ----------- ----------- -----------
Cash expenses
Operating expenses (74,446) (51,318) (204,277) (148,504)
Interest expense (30,915) (17,858) (87,541) (48,263)
Income taxes (10,741) (18,121) (57,913) (42,946)
Charge for closing
mortgage operations -- -- -- (3,934)
----------- ----------- ----------- -----------
(116,102) (87,297) (349,731) (243,647)
----------- ----------- ----------- -----------
Operating cash flow 62,414 35,130 164,988 35,873
Credit enhancement
deposits (26,001) (30,750) (93,001) (87,750)
----------- ----------- ----------- -----------
Net cash flow $ 36,413 $ 4,380 $ 71,987 $ (51,877)
=========== =========== =========== ===========
Total Cash Flow
Generated by Trusts:
Undistributed $ 37,503 $ 17,184 $ 109,595 $ 77,092
Distributed 51,483 42,732 158,552 79,443
----------- ----------- ----------- -----------
Total $ 88,986 $ 59,916 $ 268,147 $ 156,535
=========== =========== =========== ===========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Auto lending operations
Auto loan
originations $ 1,653,200 $ 1,155,116 $ 4,440,939 $ 3,167,835
Auto loans sold 1,300,005 1,025,000 3,800,002 2,925,000
Gain on sale of auto
loans 79,674 52,923 212,433 149,654
Gain on sale of auto
loans 6.1% 5.2% 5.6% 5.1%
(% of loans sold)
Average owned
receivables $ 1,167,508 $ 533,259 $ 975,265 $ 496,599
Average serviced
receivables 7,451,125 5,060,612 6,857,243 4,514,551
----------- ----------- ----------- -----------
Average managed
receivables $ 8,618,633 $ 5,593,871 $ 7,832,508 $ 5,011,150
=========== =========== =========== ===========
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Auto lending operations
Net charge-offs
Owned $ 4,565 $ 2,467 $ 10,788 $ 5,851
Serviced 72,477 51,530 203,027 149,053
----------- ----------- ----------- -----------
$ 77,042 $ 53,997 $ 213,815 $ 154,904
=========== =========== =========== ===========
Net charge-offs as a
percentage of average
managed receivables
outstanding 3.6% 3.9% 3.6% 4.1%
=========== =========== =========== ===========
March 31, 2001
-------------------------------------
Auto loan portfolio Owned Serviced Total Managed
----- -------- -------------
Principal $ 1,524,264 $ 7,576,990 $ 9,101,254
Allowance for losses (43,383) (773,991) (817,374)
----------- ----------- -----------
$ 1,480,881 $ 6,802,999 $ 8,283,880
=========== =========== ===========
Allowance for losses (%) 2.8% 10.2% 9.0%
=========== =========== ===========
March 31, December 31, March 31,
2001 2000 2000
----------- ----------- -----------
Auto loan delinquency (%)
31 - 60 days 6.6% 7.8% 6.0%
> 60 days 2.3% 2.7% 2.1%
----------- ----------- -----------
8.9% 10.5% 8.1%
Repossessions 1.0% 1.0% 0.8%
----------- ----------- -----------
9.9% 11.5% 8.9%
=========== =========== ===========
Pro Forma Portfolio-Based Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000(2)
----------- ----------- ----------- -----------
Finance charge, fee and
other income $ 420,673 $ 272,093 $ 1,163,248 $ 737,163
Funding costs (165,019) (107,991) (461,117) (282,742)
----------- ----------- ----------- -----------
Net margin 255,654 164,102 702,131 454,421
Operating expenses (79,342) (55,488) (219,837) (162,031)
Credit losses (77,042) (53,997) (213,815) (154,904)
----------- ----------- ----------- -----------
Pre-tax portfolio-based
income 99,270 54,617 268,479 137,486
Income taxes (38,219) (21,028) (103,364) (52,933)
----------- ----------- ----------- -----------
Net portfolio-based
income $ 61,051 $ 33,589 $ 165,115 $ 84,553
=========== =========== =========== ===========
Diluted portfolio-
based earnings per
share $ 0.70 $ 0.43 $ 1.95 $ 1.10
=========== =========== =========== ===========
Pro Forma Return on Managed Assets(1)
(Auto Business, Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Finance charge, fee and
other income 19.8% 19.6% 19.8% 19.5%
Funding costs (7.8) (7.8) (7.9) (7.5)
----------- ----------- ----------- -----------
Net margin 12.0 11.8 11.9 12.0
Credit losses (3.6) (3.9) (3.6) (4.1)
----------- ----------- ----------- -----------
Risk adjusted margin 8.4 7.9 8.3 7.9
Operating expenses (3.7) (4.0) (3.7) (4.2)
----------- ----------- ----------- -----------
Pre-tax return on
managed assets 4.7 3.9 4.6 3.7
Income taxes (1.8) (1.5) (1.8) (1.4)
----------- ----------- ----------- -----------
Return on managed
assets 2.9% 2.4% 2.8% 2.3%
=========== =========== =========== ===========
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 nine-month
period ended March 31, 2000, excludes the charge for the closing
of AmeriCredit's mortgage business.