AmeriCredit Reports Record Second Quarter Operating Results, Meets Earnings Expectations
FORT WORTH, Texas--Jan. 10, 2002--| -- | 2nd Quarter Earnings Per Share Up 60% to $0.91 |
| -- | 2nd Quarter Net Income Up 66% to $80.6 Million |
| -- | Quarterly Loan Originations Up 47% to $2.0 Billion |
| -- | Managed Portfolio Up 51% to $12.4 Billion |
AMERICREDIT CORP. today announced record net income of $80.6 million, or $0.91 per share, for its second fiscal quarter ended December 31, 2001, versus earnings of $48.4 million, or $0.57 per share, for the same period a year earlier. On a comparative basis, net income increased 66% and earnings per share rose 60%.
For the six months ended December 31, 2001, AmeriCredit reported net income of $159.3 million, or $1.79 per share, versus earnings of $90.7 million, or $1.08 per share, for the six months ended December 31, 2000. On a comparative basis, earnings increased 76% and earnings per share rose 66%.
Automobile loan purchases were $2.04 billion for the second quarter of fiscal 2002, an increase of 47% over loan purchases of $1.38 billion for the second quarter of fiscal 2001. AmeriCredit's managed auto receivables totaled $12.38 billion at December 31, 2001, an increase of 51% since December 31, 2000. The Company had 254 branch locations throughout the United States and Canada at December 31, 2001.
Annualized net charge-offs were 4.3% of average managed auto receivables for the second quarter of fiscal 2002 and in line with the Company's guidance. This compares to net charge-offs of 3.6% for the second quarter of fiscal 2001. Managed auto receivables more than sixty days delinquent were 3.8% of total managed auto receivables at December 31, 2001, compared to 2.7% at December 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. 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 $2.10 billion to $2.25
billion in auto loans during its third fiscal quarter ending
March 31, 2002, $8.45 billion to $8.75 billion in auto loans
during the fiscal year ending June 30, 2002, and $9.10 billion
to $9.70 billion in auto loans during the calendar year ending
December 31, 2002.
-- Earnings per share are projected in a range of $0.96 to $0.98
for the quarter ending March 31, 2002, $3.76 to $3.84 for the
fiscal year ending June 30, 2002, and $4.16 to $4.28 for the
calendar year ending December 31, 2002.
-- Pro forma portfolio-based earnings per share are projected in
a range between $0.89 to $0.91 for the quarter ending March
31, 2002, $3.58 to $3.64 for the fiscal year ending June 30,
2002, and $3.92 to $4.04 for the calendar year ending December
31, 2002.
AmeriCredit will host a conference call for analysts and investors at 9:00 A.M. Eastern Standard Time on Friday, January 11, 2002. 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. is the largest independent middle-market auto finance company in North America. Using its branch network and strategic alliances with auto groups and banks, the company makes auto loans to consumers who are typically unable to obtain financing from traditional sources. AmeriCredit has nearly one million active loan customers throughout the United States and Canada 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, 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 Six Months Ended
December 31, December 31,
------------------ -----------------
2001 2000 2001 2000
------ ------ ------ ------
Revenue:
Finance charge income $ 80,027 $ 52,095 $176,824 $ 97,495
Gain on sale of
receivables 108,690 71,173 201,620 132,759
Servicing fee income 94,571 63,435 179,806 122,705
Other income 3,377 1,906 6,250 4,991
-------- -------- -------- --------
286,665 188,609 564,500 357,950
-------- -------- -------- --------
Costs and expenses:
Operating expenses 108,390 73,201 207,766 140,495
Provision for loan losses 16,667 7,271 31,509 13,325
Interest expense 30,557 29,370 66,147 56,626
-------- -------- -------- --------
155,614 109,842 305,422 210,446
-------- -------- -------- --------
Income before income
taxes 131,051 78,767 259,078 147,504
Income tax provision 50,455 30,325 99,745 56,789
-------- -------- -------- --------
Net income $ 80,596 $ 48,442 $159,333 $ 90,715
======== ======== ======== ========
Earnings per share:
Basic $ 0.95 $ 0.62 $ 1.89 $ 1.17
======== ======== ======== ========
Diluted $ 0.91 $ 0.57 $ 1.79 $ 1.08
======== ======== ======== ========
Weighted average
shares 84,546,353 78,261,907 84,217,345 77,757,716
========== ========== ========== ==========
Weighted average
shares and
assumed incremental
shares 88,669,914 84,418,806 89,253,406 83,888,520
========== ========== ========== ==========
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
December 31, September 30, June 30,
2001 2001 2001
------------- ------------- -------------
Cash and cash equivalents $ 95,509 $ 92,110 $ 77,053
Finance receivables, net 2,300,486 2,207,270 1,921,465
Interest-only receivables
from Trusts 412,352 376,291 387,895
Investments in Trust
receivables 549,319 514,852 493,022
Restricted cash 539,003 353,674 270,358
Other assets 373,643 319,670 235,114
------------- ------------- -------------
Total assets $ 4,270,312 $ 3,863,867 $ 3,384,907
============= ============= =============
Borrowings under
warehouse lines $ 1,929,552 $ 1,755,121 $ 1,502,879
Senior notes 375,000 375,000 375,000
Other notes payable 246,371 104,201 59,396
Other liabilities 484,101 496,697 387,436
------------- ------------- -------------
Total liabilities 3,035,024 2,731,019 2,324,711
Shareholders' equity 1,235,288 1,132,848 1,060,196
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 4,270,312 $ 3,863,867 $ 3,384,907
============= ============= =============
Cash Flows From Operating Activities
(Unaudited, Dollars in Thousands)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ----------------
2001 2000 2001 2000
------ ------ ------ ------
Cash revenue:
Finance charge income $ 80,027 $ 52,095 $176,824 $ 97,495
Cash gain on sale 8,831 17,063 12,083 29,213
Servicing fee income 66,147 43,693 123,540 83,173
Other income 3,377 1,906 6,250 4,324
Securitization
distributions 57,130 58,009(a) 127,863 107,069(a)
Changes in working
capital 21,861 (7,679) 10,947 14,929
-------- -------- -------- --------
237,373 165,087 457,507 336,203
-------- -------- -------- --------
Cash expenses:
Operating expenses (102,362) (67,614) (195,843) (129,831)
Interest expense (30,557) (29,370) (66,147) (56,626)
Income taxes (76,843) (26,004) (84,446) (47,172)
-------- -------- -------- --------
(209,762) (122,988) (346,436) (233,629)
-------- -------- -------- --------
Operating cash flow 27,611 42,099 111,071 102,574
Credit enhancement
deposits (38,500) (31,000) (73,000) (67,000)
-------- -------- -------- --------
Net cash flow ($10,889) $ 11,099 $ 38,071 $ 35,574
======== ======== ======== ========
Total Cash Flow
Generated by Trusts:
Undistributed $ 34,341 $ 45,594 $ 61,205 $ 72,092
Distributed 57,130 58,009(a) 127,863 107,069(a)
-------- -------- -------- --------
Total $ 91,471 $103,603 $189,068 $179,161
======== ======== ======== ========
(a) Includes one-time cash distribution of $13 million released
from several older transactions as a result of a negotiated
reduction in the floor enhancement levels required for those
transactions.
Other Financial Data
(Unaudited, Dollars in Thousands)
Three Months Ended
December 31,
-------------------------
2001 2000
------------ ------------
Auto lending operations:
Auto loan originations $ 2,035,693 $ 1,380,986
Auto loans sold 1,924,998 1,299,999
Gain on sale of auto loans 108,690 71,173
Gain on sale of auto loans 5.6% 5.5%
(% of loans sold)
Average owned receivables $ 1,653,046 $ 961,780
Average serviced receivables 10,232,783 6,894,906
------------ ------------
Average managed receivables $ 11,885,829 $ 7,856,686
============ ============
Six Months Ended
December 31,
-------------------------
2001 2000
------------ ------------
Auto lending operations:
Auto loan originations $ 4,070,912 $ 2,787,739
Auto loans sold
3,649,997 2,499,997
Gain on sale of auto loans 201,620 132,759
Gain on sale of auto loans 5.5% 5.3%
(% of loans sold)
Average owned receivables $ 1,808,214 $ 881,232
Average serviced receivables 9,513,853 6,566,758
------------ ------------
Average managed receivables $11,322,067 $ 7,447,990
============ ============
Three Months Ended
December 31,
-------------------------
2001 2000
------------ ------------
Auto lending operations
Net charge-offs:
Owned $ 13,545 $ 3,388
Serviced 116,367 67,838
------------ ------------
$ 129,912 $ 71,226
============ ============
Net charge-offs as a
percentage
of average managed
receivables outstanding 4.3% 3.6%
============ ============
Six Months Ended
December 31,
-------------------------
2001 2000
------------ ------------
Auto lending operations
Net charge-offs:
Owned $ 21,808 $ 6,223
Serviced 212,317 130,550
------------ ------------
$ 234,125 $ 136,773
============ ============
Net charge-offs as a
percentage
of average managed
receivables outstanding 4.1% 3.6%
============ ============
December 31, 2001
--------------------------------------------
Auto loan portfolio: Owned Serviced Total Managed
------------ -------------- --------------
Principal $ 2,366,256 $ 10,014,943 $ 12,381,199
Allowance for losses (65,770) (1,093,244) (1,159,014)
------------ -------------- --------------
$ 2,300,486 $ 8,921,699 $ 11,222,185
============ ============== ==============
Allowance for losses (%) 2.8% 10.9% 9.4%
============ ============== ==============
December 31, September 30, December 31,
2001 2001 2000
------------ -------------- --------------
Auto loan delinquency (%):
31 - 60 days 8.5% 7.7% 7.8%
> 60 days 3.8 3.1 2.7
------------ -------------- --------------
12.3 10.8 10.5
Repossessions 1.1 1.0 1.0
------------ -------------- --------------
13.4% 11.8% 11.5%
============ ============== ==============
Pro Forma Portfolio-Based Earnings Data(1)
(Unaudited, Dollars in Thousands)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ -------------------
2001 2000 2001 2000
------ ------ ------ ------
Finance charge, fee and
other income $ 552,961 $ 386,749 $1,065,505 $ 742,575
Funding costs (188,309) (153,701) (367,801) (296,098)
---------- ---------- ---------- ---------
Net margin 364,652 233,048 697,704 446,477
Operating expenses (108,390) (73,201) (207,766) (140,495)
Credit losses (129,912) (71,226) (234,125) (136,773)
---------- ---------- ---------- ---------
Pre-tax portfolio-based
income 126,350 88,621 255,813 169,209
Income taxes (48,645) (34,119) (98,488) (65,145)
---------- ---------- ---------- ---------
Net portfolio-based
income $ 77,705 $ 54,502 $ 157,325 $ 104,064
========== ========== ========= =========
Diluted portfolio-based $ 0.88 $ 0.65 $ 1.76 $ 1.24
earnings per share
========== ========== ========= =========
Pro Forma Return on Managed Assets(1)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
2001 2000 2001 2000
------ ------ ------ ------
Finance charge, fee and
other income 18.5% 19.5% 18.7% 19.8%
Funding costs (6.3) (7.7) (6.5) (7.9)
---------- ---------- ---------- ---------
Net margin 12.2 11.8 12.2 11.9
Credit losses (4.3) (3.6) (4.1) (3.6)
---------- ---------- ---------- ---------
Risk adjusted margin 7.9 8.2 8.1 8.3
Operating expenses (3.6) (3.7) (3.6) (3.7)
---------- ---------- ---------- ---------
Pre-tax return on
managed assets 4.3 4.5 4.5 4.6
Income taxes (1.7) (1.7) (1.7) (1.8)
---------- ---------- ---------- ---------
Return on managed assets 2.6% 2.8% 2.8% 2.8%
========== ========== ========== =========
(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.