AmeriCredit Reports Record First Quarter 2002 Operating Results
FORT WORTH, Texas--Oct. 10, 2001--AMERICREDIT CORP.| -- | 1st Quarter Earnings Per Share Up 73% to $0.88 |
| -- | 1st Quarter Net Income Up 86% to $78.7 Million |
| -- | Quarterly Loan Originations Up 45% to $2.0 Billion |
| -- | Managed Portfolio Up 52% to $11.3 Billion |
AMERICREDIT CORP. today announced record net income of $78,737,000, or $0.88 per share, for its first fiscal quarter ended September 30, 2001, versus earnings of $42,273,000, or $0.51 per share, for the same period a year earlier. On a comparative basis, net income increased 86% and earnings per share rose 73%.
Automobile loan purchases were $2,035,219,000 for the first quarter of fiscal 2002, an increase of 45% over loan purchases of $1,406,753,000 for the first quarter of fiscal 2001. AmeriCredit's managed auto receivables totaled $11,325,476,000 at September 30, 2001, an increase of 52% since September 30, 2000. The Company had 248 branch locations throughout the United States and Canada at September 30, 2001.
Annualized net charge-offs were 3.8% of average managed auto receivables for the first quarter, compared to 3.7% for the first quarter of fiscal 2001. Managed auto receivables more than sixty days delinquent were 3.1% of total managed auto receivables at September 30, 2001, compared to 2.4% at September 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.
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 $1.80 billion to $2.00
billion in auto loans during its second fiscal quarter ending
December 31, 2001, and $8.15 billion to $8.55 billion in auto
loans during the fiscal year ending June 30, 2002.
-- Earnings per share are projected in a range of $0.89 to $0.92 for
the quarter 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 $0.86 to $0.89 for the quarter ending December 31,
2001, and $3.56 to $3.64 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 Thursday, October 11, 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, 2001. Such risks include - but are not limited to - deteriorating economic environment, adverse portfolio performance, reliance on capital markets, fluctuating interest rates, increased competition, regulatory changes and tightening labor markets. 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
September 30,
-----------------------------
2001 2000
------------ ------------
Revenue:
Finance charge income $ 96,797 $ 45,400
Gain on sale of receivables 92,930 61,586
Servicing fee income 85,235 59,270
Other income 2,873 3,085
------------ ------------
277,835 169,341
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Costs and expenses:
Operating expenses 99,376 67,294
Provision for losses 14,842 6,054
Interest expense 35,590 27,256
------------ ------------
149,808 100,604
------------ ------------
Income before income taxes 128,027 68,737
Income tax provision 49,290 26,464
------------ ------------
Net income $ 78,737 $ 42,273
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Earnings per share:
Basic $ 0.94 $ 0.55
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Diluted $ 0.88 $ 0.51
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Weighted average shares 83,888,338 77,253,522
============ ============
Weighted average shares and
assumed incremental shares 89,836,898 83,358,230
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Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
September 30, June 30, September 30,
2001 2001 2000
------------- ------------- -------------
Cash and cash equivalents $ 92,110 $ 77,053 $ 128,897
Finance receivables, net 2,207,270 1,921,465 1,057,408
Interest-only receivables
from Trusts 376,291 387,895 230,624
Investments in Trust
receivables 514,852 493,022 390,912
Restricted cash 353,674 270,358 284,976
Other assets 319,670 235,114 154,222
------------- ------------- -------------
Total assets $ 3,863,867 $ 3,384,907 $ 2,247,039
============= ============= =============
Borrowings under warehouse
lines $ 1,755,121 $ 1,502,879 $ 766,195
Senior notes 375,000 375,000 375,000
Other notes payable 104,201 59,396 95,726
Other liabilities 496,697 387,436 249,129
------------- ------------- -------------
Total liabilities 2,731,019 2,324,711 1,486,050
Shareholders' equity 1,132,848 1,060,196 760,989
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 3,863,867 $ 3,384,907 $ 2,247,039
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Cash Flows From Operating Activities
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
-----------------------------
2001 2000
------------ ------------
Cash revenue:
Finance charge income $ 96,797 $ 45,400
Cash gain on sale 3,252 12,150
Servicing fee income 57,393 39,480
Other income 2,873 2,418
Securitization distributions 70,733 49,060
Changes in working capital (10,914) 22,608
------------ ------------
220,134 171,116
------------ ------------
Cash expenses:
Operating expenses (93,481) (62,217)
Interest expense (35,590) (27,256)
Income taxes (7,603) (21,168)
------------ ------------
(136,674) (110,641)
------------ ------------
Operating cash flow 83,460 60,475
Credit enhancement deposits (34,500) (36,000)
------------ ------------
Net cash flow $ 48,960 $ 24,475
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Total Cash Flow Generated by Trusts:
Undistributed $ 26,864 $ 26,498
Distributed 70,733 49,060
------------ ------------
Total $ 97,597 $ 75,558
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Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
-----------------------------
2001 2000
------------ ------------
Auto lending operations:
Auto loan originations $ 2,035,219 $ 1,406,753
Auto loans sold 1,724,999 1,199,998
Gain on sale of auto loans 92,930 61,586
Gain on sale of auto loans
(% of loans sold) 5.4% 5.1%
Average owned receivables $ 1,962,955 $ 800,684
Average serviced receivables 8,794,923 6,238,610
------------ ------------
Average managed receivables $ 10,757,878 $ 7,039,294
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Three Months Ended
September 30,
-----------------------------
2001 2000
------------ ------------
Auto lending operations
Net charge-offs:
Owned $ 8,263 $ 2,835
Serviced 95,950 62,712
------------ ------------
$ 104,213 $ 65,547
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Net charge-offs as a percentage
of average managed
receivables outstanding 3.8% 3.7%
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September 30, 2001
-----------------------------------------
Auto loan portfolio: Owned Serviced Total Managed
----- -------- -------------
Principal $ 2,268,495 $ 9,056,981 $ 11,325,476
Allowance for losses (61,225) (983,961) (1,045,186)
------------- ------------- -------------
$ 2,207,270 $ 8,073,020 $ 10,280,290
============= ============= =============
Allowance for losses (%) 2.7% 10.9% 9.2%
============= ============= =============
September 30, June 30, September 30,
2001 2001 2000
------------- ------------- -------------
Auto loan delinquency (%):
31 - 60 days 7.7% 6.6% 7.3%
> 60 days 3.1% 2.5% 2.4%
------------- ------------- -------------
10.8% 9.1% 9.7%
Repossessions 1.0% 1.0% 0.8%
-------------- ------------ -------------
11.8% 10.1% 10.5%
============= ============= =============
Pro Forma Portfolio-Based Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended
September 30,
-----------------------------
2001 2000
------------ ------------
Finance charge, fee and other income $ 512,544 $ 355,826
Funding costs (179,492) (142,397)
------------ ------------
Net margin 333,052 213,429
Operating expenses (99,376) (67,294)
Credit losses (104,213) (65,547)
------------ ------------
Pre-tax portfolio-based income 129,463 80,588
Income taxes (49,843) (31,026)
------------ ------------
Net portfolio-based income $ 79,620 $ 49,562
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Diluted portfolio-based
earnings per share $ 0.89 $ 0.59
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Pro Forma Return on Managed Assets(1)
(Unaudited)
Three Months Ended
September 30,
-----------------------------
2001 2000
------------ ------------
Finance charge, fee and other income 18.9% 20.0%
Funding costs (6.6) (8.0)
------------ ------------
Net margin 12.3 12.0
Credit losses (3.8) (3.7)
------------ ------------
Risk adjusted margin 8.5 8.3
Operating expenses (3.7) (3.8)
------------ ------------
Pre-tax return on managed assets 4.8 4.5
Income taxes (1.9) (1.7)
------------ ------------
Return on managed assets 2.9% 2.8%
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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 charges and fees are recognized over the life of the
securitized receivables as accrued and interest and other costs
related to the asset-backed securities are also recognized as
accrued. Credit losses are recorded when the Company repossesses
and disposes of the collateral or the account is otherwise deemed
uncollectible. 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.