AmeriCredit Reports Record Q4 and Fiscal Year End Operating Results
FORT WORTH, Texas--Aug. 7, 2001--AMERICREDIT CORP. :| -- | 4th Quarter Earnings Per Share Up 76% to $0.81 |
| -- | 4th Quarter Net Income Up 93% to $71.7 Million |
| -- | Managed Portfolio Up 53% Over June 2000 to $10.2 billion |
| -- | Annualized Charge-Off Rate Remains 3.6% |
AMERICREDIT CORP. today announced record net income of $71,707,000, or $0.81 per share, for its fourth fiscal quarter ended June 30, 2001, versus earnings of $37,158,000, or $0.46 per share for the same period a year earlier. On a comparative basis, earnings increased 93% and earnings per share rose 76%.
For the fiscal year ended June 30, 2001, AmeriCredit reported net income of $222,852,000, or $2.60 per share, versus earnings of $114,501,000, or $1.48 per share, for the fiscal year ended June 30, 2000. Excluding the charge for the closing of AmeriCredit's mortgage business last year, earnings for the fiscal year ended June 30, 2000 were $123,486,000, or $1.59 per share. On a comparative basis, excluding the charge, earnings increased 80% and earnings per share rose 64%.
Automobile loan purchases were $1,937,713,000 for the fourth quarter of fiscal 2001, an increase of 54% over loan purchases of $1,260,110,000 for the fourth quarter of fiscal 2000. For the fiscal year ended June 30, 2001, automobile loan purchases were $6,378,652,000, 44% higher than loan purchases of $4,427,945,000 for the fiscal year ended June 30, 2000. AmeriCredit's managed auto receivables totaled $10,203,746,000 at June 30, 2001, an increase of 53% since June 30, 2000. The Company had 232 branch locations throughout the United States and Canada at June 30, 2001.
Annualized net charge-offs were 3.6% of average managed auto receivables for the fourth quarter, compared to 3.8% for the fourth quarter of fiscal 2000. Managed auto receivables more than sixty days delinquent were 2.5% of total managed auto receivables at June 30, 2001, compared to 2.3% at June 30, 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 $1.95 to $2.05 billion
in auto loans during its first fiscal quarter ending September
30, 2001, $7.44 to $7.64 billion in auto loans during the
calendar year ending December 31, 2001, and $8.15 to $8.55
billion in auto loans during the fiscal year ending June 30,
2002.
-- Earnings per share are projected in a range of $0.86 to $0.88
for the quarter ending September 30, 2001, $3.27 to $3.31 for
the calendar year ending December 31, 2001, and $3.76 to $3.84
for the fiscal year ending June 30, 2002.
-- Pro forma portfolio-based earnings per share are projected in
a range between $0.89 to $0.91 for the quarter ending
September 30, 2001, $3.34 to $3.38 for the calendar year
ending December 31, 2001, and $3.88 to $3.96 for the fiscal
year ending June 30, 2002.
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Daylight Time on Wednesday, August 8, 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 is the largest independent 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.
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, 2000. Such risks include -- but are not limited to -- fluctuating interest rates, increased competition, regulatory changes, tightening labor markets, deteriorating economic environment, reliance on capital markets and adverse portfolio performance. 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 Year Ended
June 30, June 30,
----------------------- -----------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Revenue:
Finance charge income $ 66,698 $ 38,644 $ 225,210 $ 124,150
Gain on sale of
receivables 89,335 57,905 301,768 209,070
Servicing fee income 84,111 49,723 281,239 170,251
Other income 2,978 1,512 10,007 6,209
----------- ----------- ----------- -----------
243,122 147,784 818,224 509,680
----------- ----------- ----------- -----------
Costs and expenses:
Operating expenses 88,616 61,188 308,453 223,219
Provision for losses 9,427 5,130 31,387 16,359
Interest expense 28,483 21,047 116,024 69,310
Charge for closing
mortgage operations -- -- -- 10,500
----------- ----------- ----------- -----------
126,526 87,365 455,864 319,388
----------- ----------- ----------- -----------
Income before income
taxes 116,596 60,419 362,360 190,292
Income tax provision 44,889 23,261 139,508 75,791
----------- ----------- ----------- -----------
Net income $ 71,707 $ 37,158 $ 222,852 $ 114,501
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.87 $ 0.49 $ 2.80 $ 1.57
=========== =========== =========== ===========
Diluted $ 0.81 $ 0.46 $ 2.60 $ 1.48
=========== =========== =========== ===========
Weighted average
shares 82,699,603 75,840,922 79,562,495 73,038,005
=========== =========== =========== ===========
Weighted average shares
and assumed
incremental shares 88,966,281 80,840,165 85,852,086 77,613,652
=========== =========== =========== ===========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
June 30, March 31, June 30,
2001 2001 2000
---------- ---------- ----------
Cash and cash equivalents $ 77,053 $ 101,511 $ 42,916
Finance receivables, net 1,921,465 1,483,160 871,511
Interest-only receivables from Trusts 387,895 271,817 229,059
Investments in Trust receivables 493,022 442,806 341,707
Restricted cash 270,358 298,721 253,852
Other assets 235,114 198,339 123,224
---------- ---------- ----------
Total assets $3,384,907 $2,796,354 $1,862,269
========== ========== ==========
Borrowings under warehouse lines $1,502,879 $1,148,345 $ 487,700
Senior notes 375,000 375,000 375,000
Other notes payable 59,396 79,100 86,297
Other liabilities 387,436 265,239 224,693
---------- ---------- ----------
Total liabilities 2,324,711 1,867,684 1,173,690
Shareholders' equity 1,060,196 928,670 688,579
---------- ---------- ----------
Total liabilities and
shareholders' equity $3,384,907 $2,796,354 $1,862,269
========== ========== ==========
Cash Flows From Operating Activities:
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
------------------ ---------------
2001 2000 2001 2000
---- ---- ---- ----
Cash revenue
Finance charge income $ 66,698 $ 38,644 $ 225,210 $ 124,150
Cash gain on sale 15,069 10,482 57,777 22,894
Servicing fee income 55,437 37,028 187,790 126,168
Other income 2,978 1,512 9,340 6,209
Securitization
distributions 56,077 45,661 214,629 125,104
Changes in working
capital 21,805 (4,464) 38,037 3,858
-------- -------- -------- --------
218,064 128,863 732,783 408,383
-------- -------- -------- --------
Cash expenses
Operating expenses (83,769) (55,358) (288,046) (203,862)
Interest expense (28,483) (21,047) (116,024) (69,310)
Income taxes 1,353 (17,457) (56,561) (60,403)
Charge for closing
mortgage operations -- -- -- (3,934)
-------- -------- -------- --------
(110,899) (93,862) (460,631) (337,509)
-------- -------- -------- --------
Operating cash flow 107,165 35,001 272,152 70,874
Credit enhancement
deposits (30,008) (32,250) (123,008) (120,000)
-------- -------- -------- --------
Net cash flow $ 77,157 $ 2,751 $ 149,144 $ (49,126)
======== ======== ======== ========
Total Cash Flow Generated by Trusts:
Undistributed $ 72,996 $ 24,214 $ 182,591 $ 101,306
Distributed 56,077 45,661 214,629 125,104
-------- -------- -------- --------
Total $129,073 $ 69,875 $ 397,220 $ 226,410
======== ======== ======= ========
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
---------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ------------
Auto lending operations
Auto loan
originations $1,937,713 $1,260,110 $6,378,652 $4,427,945
Auto loans sold 1,500,002 1,074,999 5,300,004 3,999,999
Gain on sale of auto
loans 89,335 57,905 301,768 207,559
Gain on sale of auto
loans 6.0% 5.4% 5.7% 5.2%
(% of loans sold)
Average owned
receivables $1,260,209 $ 685,824 $1,046,306 $ 543,518
Average serviced
receivables 8,413,858 5,629,710 7,245,330 4,791,062
---------- ---------- ---------- ------------
Average managed
receivables $9,674,067 $6,315,534 $8,291,636 $5,334,580
========== ========== ========== ============
Three Months Ended Year Ended
June 30, June 30,
----------------- -------------------
2001 2000 2001 2000
------- ------- -------- ----------
Auto lending operations
Net charge-offs
Owned $ 6,546 $ 3,772 $ 17,334 $ 9,623
Serviced 81,330 55,600 284,357 204,653
------- ------- -------- ----------
$87,876 $59,372 $301,691 $214,276
======= ======= ======== ==========
Net charge-offs as a
percentage of average managed
receivables outstanding 3.6% 3.8% 3.6% 4.0%
======= ======= ======== ==========
June 30, 2001
---------------------------------------------
Auto loan portfolio Owned Serviced Total Managed
------------ ------------ -------------
Principal $ 1,973,828 $ 8,229,918 $ 10,203,746
Allowance for losses (52,363) (868,184) (920,547)
------------ ------------ -------------
$ 1,921,465 $ 7,361,734 $ 9,283,199
============ ============ =============
Allowance for losses (%) 2.7% 10.6% 9.0%
============ ============ =============
June 30, March 31, June 30,
2001 2001 2000
------------ ------------ ------------
Auto loan delinquency (%)
31 - 60 days 6.6% 6.6% 6.7%
More than 60 days 2.5% 2.3% 2.3%
------------ ------------ ------------
9.1% 8.9% 9.0%
Repossessions 1.0% 1.0% 0.6%
------------ ------------ ------------
10.1% 9.9% 9.6%
============ ============ ============
Pro Forma Portfolio-Based Earnings Data (1)
(Unaudited, Dollars in Thousands)
Three Months Ended Year Ended
June 30, June 30,
---------------------- -----------------------
2001 2000 2001 2000(2)
---------- ----------- ----------- -----------
Finance charge, fee
and other income $ 465,235 $ 311,219 $ 1,628,483 $ 1,048,382
Funding costs (169,865) (121,982) (630,982) (404,724)
---------- ----------- ----------- -----------
Net margin 295,370 189,237 997,501 643,658
Operating expenses (88,616) (61,188) (308,453) (223,219)
Credit losses (87,876) (59,372) (301,691) (214,276)
---------- ----------- ----------- -----------
Pre-tax portfolio-
based income 118,878 68,677 387,357 206,163
Income taxes (45,768) (26,441) (149,132) (79,374)
---------- ----------- ----------- -----------
Net portfolio-based
income $ 73,110 $ 42,236 $ 238,225 $ 126,789
========== =========== =========== ===========
Diluted portfolio-
based earnings
per share $ 0.82 $ 0.52 $ 2.77 $ 1.63
========== =========== =========== ===========
Pro Forma Return on Managed Assets (1)
(Auto Business, Unaudited)
Three Months Ended Year Ended
June 30, June 30,
---------------------- -----------------------
2001 2000 2001 2000
---------- ----------- ----------- -----------
Finance charge, fee
and other income 19.3% 19.8% 19.6% 19.6%
Funding costs (7.1) (7.8) (7.6) (7.6)
---------- ----------- ----------- -----------
Net margin 12.2 12.0 12.0 12.0
Credit losses (3.6) (3.8) (3.6) (4.0)
---------- ----------- ----------- -----------
Risk adjusted margin 8.6 8.2 8.4 8.0
Operating expenses (3.7) (3.9) (3.7) (4.1)
---------- ----------- ----------- -----------
Pre-tax return on
managed assets 4.9 4.3 4.7 3.9
Income taxes (1.9) (1.6) (1.8) (1.5)
---------- ----------- ----------- -----------
Return on managed
assets 3.0% 2.7% 2.9% 2.4%
========== =========== =========== ===========
(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 year ended
June 30, 2000, excludes the charge for the closing of
AmeriCredit's mortgage business.